2011 is gone and we now have upon us a fresh start to a new year (Ahh… deep breath). But what does that mean for the housing industry? The Land Advisors Northern California team is looking ahead, and is wary that 2012 might reflect more of what 2011 had to offer.
The Sacramento region is highly sensitive to State budget woes that will likely cut more jobs and hinder organic economic growth in the area. Home prices appear to be on a downward trend, and foreclosure rates are still high. A statewide court ruling last week that eliminated redevelopment agencies, threatens the revitalization of the Sacramento downtown area, and now two signature development projects may never see the +$80 million in redevelopment money they were scheduled to receive in coming years.
Among the doom and gloom, the general consensus is that a bottom in the housing market is within clear sight! Local Northern California investors and developers can see more and more distressed opportunities ahead. And while many public and private homebuilders remain on the land acquisition sidelines, and are still busy impairing projects that were purchased during the 2010 boom, they are optimistic that the market will gradually get better and home prices will soon start to appreciate.
Source: Ryan Long, Senior Marketing Consultant, (916) 784-3329