Sacramento’s Elder Creek and Fruitridge areas include the zip codes 95820 and 95824.  Since last year two things have happened, and one of them implies the other.  First, prices have fallen — a lot.  Secondly, demand has increased — also a lot.  This common "demand curve" pattern is one we see demonstrated over and over again, and September’s numbers for Elder Creek and Fruitridge are as good an example of it as we’ve seen anywhere.

Unit volume has quadrupled in this area from year to year.  Last September, only 25 homes sold in the Elder Creek and Fruitridge area, whereas this year there were 106 sales.  The vast majority (80.2%) of the new sales were foreclosures, 2.8% were short sales, and 17% were non-distressed.

At the same time, sold price per square foot has been cut almost in half.   Last year the average sold price per square foot was $178.31, while this year the average was down to $91.25, a decrease of 48.8%.  Over the same time, the median sale price dropped 52.9%, from $188,000 in September of 2007 to $88,500 in September of 2008.  This year the average home sold for $105,586 in Elder Creek & Fruitridge, down 47.4% from last year’s average of $200,679.

Inventory in Elder Creek Fruitridge is at 7.1 months (based on one year of sales) or 5.1 months (based on the last six months).

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