Sacramento Housing in August: Sales up 8%, Active Inventory down 2% YoY

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 a few 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 suggests healing in the Sacramento market and other distressed markets are showing similar improvement.  Note: The Sacramento Association of REALTORS® started breaking out REOs in May 2008, and short sales in June 2009.

In August, total sales were up 8.4% from August 2015, and conventional equity sales were up 8.8% compared to the same month last year.

In August, 5.7% of all resales were distressed sales. This was up from 4.9% last month, and down from 7.8% in August 2015.

The percentage of REOs was at 3.0% in August, and the percentage of short sales was 2.7%.

Here are the statistics.

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 1.8% year-over-year (YoY) in August.  This was the sixteenth consecutive monthly YoY decrease in inventory in Sacramento.

Cash buyers accounted for 13.8% of all sales (frequently investors).

Summary: This data suggests a normal market with few distressed sales, and less investor buying - but with limited inventory.

from
http://feedproxy.google.com/~r/CalculatedRisk/~3/07g4x86bKtk/sacramento-housing-in-august-sales-up-8.html