Sacramento: Market Shows Signs of Stability

What goes down must come up, so is the law of ebb and flow. That said, it only makes sense that the areas first to go "South" would bottom-out first as well, and thus be on the front end of the rise as well. Such is the case with real estate in the Sacramento area, according to industry analysts.

Data indicates that the Sacramento area has already undergone about 80% of its subprime mortgage resets, while the average across the rest of the state is at about 67%. These resets refer to the adjustable-rate loans that were handed out like Halloween candy to less-qualified borrowers who purchased homes beyond their budgetary grasp. Initial interest began at a lower rate and ballooned after only a few short years, compounded by impossible refinancing and plummeting values. Analysts, however, say that current data in the area reflects that the housing market is beginning to stabilize, California's real estate possibly beginning in the same rhythm as the instability once did, but with the Sacramento area leading the recovery trend this time.