What is "depreciation"?
Depreciation, as it refers to real estate, is the decrease in the value of a property due to changes in market conditions, inflation, or other causes.
Unfortunately, over the past few years, especially in the greater Sacramento area, the real estate market has experienced significant depreciation. The good news, however, is it appears that property values may be slowly heading back up. That means, there's some "appreciation", which is a much more pleasant thing to property owners than depreciation.