I’m doing some research in the Meadowview area of South Sacramento right now, and I wanted to share a trend graph. Check out the past three years of sales for all properties south of Meadowview Road, east of Freeport Blvd, west of Detroit Blvd, and north of vacant land (excluding newer construction built in the past ten years – that’s really a different market despite being located in the same boundaries).
Based on the graph above, when do you think a wave of foreclosures hit the market in the past three years? You got it right. The market was really hurting during the last quarter of 2008 and the first couple quarters of 2009. There is evidence that the market was already struggling in 2007, but the decline really went into high gear in the latter part of 2008. This release of the foreclosure floodgates caused a hefty and quick decline in property value as can be seen above. You can see also that the market has since since experienced some recovery. In my opinion, beyond inventory decreasing, one of the things that has helped to shape property value over the past couple years in this neighborhood is investors purchasing and flipping properties. There have been an enormous amount of flips in this area.
If you have any questions, let me know. You can give me a call at 916.595.3735, email me, or comment below.
Once again a picture is worth a 1,000 words. Pretty evident when looked at visually. I have seen investors starting to flip the foreclosures in my area too. Its a good time for people to get into the real estate market IF they do it right. Prices are great as well as interest rates.
You’re right about that, Tom. There are definitely some good flips and some classic ones that are notable for all the wrong reasons. Do you appraise many flips in your area?