Thursday , July 20 2017
Home / Calculated Risk / Sacramento Housing in April: Sales down 3%, Active Inventory down 16% YoY

Sacramento Housing in April: Sales down 3%, Active Inventory down 16% YoY

Summary:
During the recession, I started following the Sacramento market to look for changes in the mix of houses sold (equity, REOs, and short sales). For several years, not much changed. But in 2012 and 2013, we saw some significant changes with a dramatic shift from distressed sales to more normal equity sales.This data suggested healing in the Sacramento market and other distressed markets showed similar improvement.  Note: The Sacramento Association of REALTORS® started breaking out REOs in May 2008, and short sales in June 2009.In April, total sales were down 2.7% from April 2016, and conventional equity sales were down 0.8% compared to the same month last year. In April, 4.7% of all resales were distressed sales. This was down from 5.5% last month, and down from 6.5% in April 2016.The

Topics:
Bill McBride considers the following as important:

This could be interesting, too:

Jeffrey P. Snider writes Why Might Hong Kong Still Be Interesting?

Tyler Durden writes Trump Jr, Manafort, Kushner To Testify Next Week

Tyler Durden writes High Yield IED

Jeffrey P. Snider writes Y2K Was Really The Great Uncertainty

During the recession, I started following the Sacramento market to look for changes in the mix of houses sold (equity, REOs, and short sales). For several years, not much changed. But in 2012 and 2013, we saw some significant changes with a dramatic shift from distressed sales to more normal equity sales.

This data suggested healing in the Sacramento market and other distressed markets showed similar improvement.  Note: The Sacramento Association of REALTORS® started breaking out REOs in May 2008, and short sales in June 2009.

In April, total sales were down 2.7% from April 2016, and conventional equity sales were down 0.8% compared to the same month last year.

In April, 4.7% of all resales were distressed sales. This was down from 5.5% last month, and down from 6.5% in April 2016.

The percentage of REOs was at 2.8%, and the percentage of short sales was 1.9%.

Here are the statistics.

Sacramento Housing in April: Sales down 3%, Active Inventory down 16% YoY Click on graph for larger image.

This graph shows the percent of REO sales, short sales and conventional sales.

There has been a sharp increase in conventional (equity) sales that started in 2012 (blue) as the percentage of distressed sales declined sharply.

Active Listing Inventory for single family homes decreased 15.7% year-over-year (YoY) in April.  This was the 24th consecutive monthly YoY decrease in inventory in Sacramento.

Cash buyers accounted for 15.6% of all sales - this has been generally declining (frequently investors).

Summary: This data suggests a normal market with few distressed sales, and less investor buying - but with limited inventory.
Bill McBride
A full time blogger, Mr. McBride retired as a senior executive from a small public company in the '90s. Mr. McBride holds an MBA from the University of California, Irvine, and has a background in management, finance and economics.

Leave a Reply

Your email address will not be published. Required fields are marked *