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Report: Home Prices Likely To Soften

  

A research firm predicts home prices in the Sacramento area may "soften" later this year.

The latest numbers from Clear Capital show home prices in the Sacramento-Arden-Roseville area have increased by 9.5 percent in the past year. That's good news for homeowners. But for first-time home buyers it's getting harder to enter the housing market, especially now that there are fewer foreclosures, or reduced-price homes available.

Clear Capital's Alex Villacorta says during the housing crisis, nearly 50 percent of the Sacramento area's inventory of homes were foreclosures. Now it's only 10 percent.

"If that inventory just doesn't exist, there'll be less of an avenue for these first time home buyers to come in, at these affordable levels," says Villacorta. "And if that happens, obviously just simple supply and demand; if the demand starts to wain, it's quite possible that we could see some softening in prices."

Villacorta says right now Sacramento ranks 14th in the U.S. when it comes to increasing home values.

 housingeconomyreal estate

Steve Milne

Morning Edition Anchor & Reporter

Steve is the voice of Capital Public Radio News as anchor of Morning Edition and Insight. He covers stories on a wide range of topics including: business, education, real estate, agriculture and music. Steve also produced stories for CapRadio.org.   Read Full Bio