August 12th, 2011 10:04 AM by Gregg Mower
How low can they go? This is a question people are asking about Real Estate Values in the Sacramento Area.
Well I see economically that the Values of Real Estate have fallen to the affordability index. Which means that the average house in the area has fallen into a price range as to which the income for the average household can now afford to purchase a good home in a good neighborhood. With the average income of people that live in the greater Sacramento Area being $36,000 per year this would afford them about a $150,000 home. This is what we call the "sweet spot", and now I am seeing good home going for 100k to 150k so we are below the "sweet spot" so it shouldn't take a genius to see that we are under valued to the market. So buy, buy, buy, before the word gets out and you will be buying with instant equity, first time in ten years.
Tell me what you think