South Sacramento’s Franklin / Freeport area (95823) is one of the areas that’s been hardest hit by foreclosures in greater Sacramento.  In fact, it currently has the largest number of Active REOs (bank foreclosures), though in terms of sold REOs, it ranks only second, with Elk Grove’s 95758 area code coming in first place.

Those of you who read me religiously (thank, mom!) will already know what I’m about to say next.  With all those foreclosures, prices have dropped dramatically, and April unit sales figures are doing quite well indeed as buyers take advantage of the bargains. 

263 bank foreclosures are listed in 95823, accounting for 41.1% of the available inventory of 640 homes.  Short sales make up another 44.5% of active inventory.  The short sale “fake listings” accounted for only 6.1% of the sales in April (down from 11.1% last April — so much for one critic’s theory that we’ll sell more of these as we go along because they take time).  Foreclosures, on the other hand, made up 82.9% of all sales in April.

The average home in Franklin / Freeport sold for $152,628 in April, down 43% from last April’s average of $267,663.  Sold price per square foot is down 43.6% and is currently $107.03, while the median price fell has fallen 44.2%, from $269,000 in April of 2007 to $150,000 in April of 2008.

Meantime, unit volume has more than tripled, rising 203.7% from 27 units in April of 2007 to 82 units in April of 2008.  There’s still a lot of unsold inventory left to get through, however.  Based on the last year’s absorption rate there are 17.14 months in inventory, however that figure is only 7.8 months if you use April’s absorption rate.  Based on the absorption rate by category, REOs have only 3.9 months of inventory, but short sales have 57 months (almost five years).

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