Sacramento Housing Report - thebubblebuster.com

SUMMARY HISTORY PEAKS & TROUGHS FORECASTS

1 | Page 2 | 3 | 4

The growth of prior years has come to an abrupt end and last year (2006) resulted in the largest yearly price drop on record (in both nominal & real terms). The 1st quarter of 2007 shows no sign of a recovery despite continued job gains and historically low mortgage rates as price growth cannot sustain prior levels due to poor affordability as during the prior California market bubble. Consequently, nominal and real prices should be expected to continue to decline towards the historic level of mortgage debt servicing cost.

SEE PRIOR SACRAMENTO PEAKS & TROUGHS Next >

Year	Nominal Price History	Nominal Price Growth	Real Price History	Real Price Growth	Sacramento Mortgage-Debt-to-Income Ratio	National Mortgage-Debt-to-Income Ratio
2002	$227,200	14.0%	$252,800	11.1%	22.4%	16.8%
2003	$260,400	14.6%	$284,700	12.6%	24.9%	17.5%
2004	$324,400	24.6%	$346,200	21.6%	29.7%	18.8%
2005	$385,200	18.7%	$400,000	15.6%	35.9%	21.5%
2006	$375,900	-2.4%	$378,900	-5.3%	33.3%	21.6%
2007	$365,500	-2.8%	$365,500	-3.5%	31.9%	21.1%

SACRAMENTO, CALIFORNIA - Q1:2007