North Sacramento and Del Paso Heights (95815 and 95838) are areas hit hard by foreclosures, which have experienced huge price declines over the last year.  Sold price per square foot fell fully 44.4%,  from $184.73 in June of 2007 to 102.74 in June of 2008.  This year’s average home sold for $122,860, down 48% in a from last year’s average of $236,061.

With the huge drop in prices, unit volume has increased 213.9% over last year’s figure, with 113 units selling this June versus only 36 last June.  Nevertheless, inventory is still high at 8.2 months, so with short sales and foreclosures making up some 81% of outstanding inventory, I expect to see additional price cuts going forward.

REOs (bank foreclosures) made up 85% of all sales in June, with short sales comprising an additional 3.5%.

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