Last week the Sacramento Bee published a report indicating the foreclosure rates had returned to “normal” levels and that the, “foreclosure crisis that overwhelmed the greater Sacramento area for the past seven years has ended.” The Sacramento, California area was one of the hardest hit by the recession and foreclosures, with average home price declines reaching 50% in some areas.
If foreclosure rates were dropping, suggested analysts, it means that home sales must be rising again.
Except they didn’t.
According to a report from the National Association of Realtors home sales plunged significantly in the month of September. So much so that it is the single largest drop in signed home sales in 40 months.