Carmichael Home Values Continue to Decrease

Now is not the time to be selling a home in Carmichael, according to recent real estate figures.

According to real estate website Zillow, home prices in Carmichael continue to decrease. Last month, the median price for homes in the 95608 ZIP code covering Carmichael was $209,000, according to the Sacramento Association of Realtors.

That number is down from $213,500 in March and $252,500 one year ago. Figures show a steady decline from just under $400,000 in June 2006.

Zillow says the current median sale price in Carmichael is even lower, at $202,400, a 20 percent drop from last year.

According to a report by The Sacramento Bee, experts explain there are a number of factors that should be considered for the Sacramento area’s housing value decline, but zeroed in on three in particular, including a high unemployment rate, the volume of distressed properties on the market and the high percentage of government employees in Sacramento and ongoing budget negotiations turning many off to the notion of purchasing homes.

The reason for the decline is that many people are losing their homes, which leads to foreclosures, said Carmichael Realtor Bill Scott.

"There's what's called a 'shadow inventory', which is a list of homes to be foreclosed upon but that the banks don't want to release so as not to flood the market," Scott said. "I think price declines are likely to continue until the inventory ends, which may be years away."