Sacramento California Median Home Price on the Rise Again & Effect on Bankruptcy Filing

Although the number of home sales in Sacramento California slowed in September, 2015, the median home sales price continued to rise compared to August, 2015.

In the County of Sacramento California, 2,191 home (new and resale homes and condos) sold in September, 2015, down from 2,254 in August, 2015.  However, this is an increase from 1,892 in September, 2014.

The median home sales price in Sacramento County was $280,000 in September, 2015, up from $271,000 in August, 2015 and and even higher than $260,000 in September, 2014.

Here is a breakdown of the type of home sold throughout Northern California counties in September, 2015 to September, 2014:

1.  Detached Home Resales:

   a.  Amador number of home sales decreased by 11.1% and price is stagnant at 0%

   b.  El Dorado number of home sales increased by 13.9% and price increased by 9.9%

   c.  Nevada number of home sales increased by 19.6% and price increased by 1.6%

   d.  Placer number of home sales increased 13.1% and price almost stagnant by -0.3%

   e.  Sacramento number of home sales increased by 13.9% and price increased by 6.9%

    f.  Sutter number of home sales increased by 16% and price increased by 18.9%

   g.  Yolo number of home sales increased by 4.6% and price increased by 11.5%

   h.  Yuba number of home sales increased by 5.4% and price increased by 9.4%

2.  New Homes Sales from August 2014 to September, 2014

   a.  El Dorado number of home sales increased by 19% and price decreased by 5.2%

   b.  Placer number of home sales increased by 35.7% and price increased by 6.2%

   c.  Sacramento number of home sales increased by 38.3% and price decreased slightly by 0.5%

   d.  Yolo number of home sales increased by 66.7% and price increased by 12.5%

   e.  Yuba number of home sales increased by a whooping 533.3% and price increased by 7.7%

3.  Resale Condos

   a.  Placer number of home sales increased by 36.4% and price decreased by 8.1%

   b.  Sacramento number of home sales increased by 17.1% and price increased by 16.8%

   c.  Yolo number of home sales increased by 33.3% and price increased by 4.1%

Source: CoreLogic cited by Sacramento Bee.

So what does this means for bankruptcy filers and what kind of challenges bankruptcy attorneys face with increasing home prices?

It has to do with exempt and nonexempt assets.  Nonexempt assets are assets that are not protected by the California exemption.  In practical terms, if a homeowner wants to file for Chapter 7 Bankruptcy but has too much equity that the house is not fully exempt by the California exemption statutes, the Chapter 7 Bankruptcy Trustee can liquidate or sale your home to repay your creditors.  This is a bad choice if the homeowner wants to keep his or her home.

A better option for this hypothetical homeowner is Chapter 13 Bankruptcy if the credit card or other debts are unmanageable outside of bankruptcy.  A Chapter 13 Bankruptcy is reorganization so you can keep your home because it is a payment plans to your creditors.  Chapter 13 Bankruptcy does NOT mean you have to repay 100% of your debts.  One of the factors that determine the portion of debt that you have to repay to your creditors is the amount of nonexempt assets.  The more equity a homeowner has in his or her home, the higher percentage of your debt you have to repay.  It is better to file when the value of homes are lower.  If home price continues to increase, which seems to be the trend since 2012, the more you would have to repay your creditor through a Chapter 13 Bankruptcy plan.  If the equity in your home is very high, you might end up repaying 100% of your debt if you wait too long as home prices soar.

However, bankruptcy is not for everyone.  Call Muoi Chea, experienced bankruptcy attorney, to explain your options under Chapter 7 and 13 Bankruptcy.