Jan 17, 2008 9:22 pm US/Pacific
North Highlands Among Worst Local Home Sale Rates
North Highlands, CA (CBS13) ―
North Highlands is really feeling the home foreclosure crisis. Homeowner, Trisha Mahan said, "We moved here about five years ago, hoping to buy something. Eventually the time was right. But we're finding that the value's not really holding right now."
When the Mahan family bought their north highlands home last year, they had a plan. They wanted to build equity quick. Right now they're going to have to wait a little longer.
The Mahan's happen to live in one of the communities hardest hit by the real estate slump. From October to December of 2006, the median selling price of a home in north highlands was $264,000.
In that same quarter of 2007, 63 homes were sold here, and the average price was $153,000.
That's a 42.5% decline in home values according to data quick information systems. But, for the Mahans, and the thousands of families like them across the valley, there is hope on the real estate horizon.
Suzanne O'Keefe, a Sacramento State professor, says, "All the information I've seen has pointed to hopefully a turnaround by the end of 2008"
If home prices continue to fall at the current rate, the local economy will likely reach an important benchmark by the end of the year that could signal the turnaround. Meaning that, prices will be more in line with historical values relative to income.
"Home price inflation will return at some point in the future, but I anticipate that it would be at a slower rate. Home prices probably will not double and triple within short time periods."
Trisha Mahan hopes to eventually move up, but right now they're going to have to stick it out.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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