9:08 AM » Sacramento Housing in May: Sales up 3.5%, Active Inventory down 18% 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 May, total sales were up 3.5% from May 2015, and conventional equity sales were up 4.9% compared to the same month last year. In May, 7.0% of all resales were distressed sales. This was up from 6.5% last month, and down from 9.7% in May 2015. The percentage of REOs was at 3.3% in May, and the percentage of short sales was 3.7%. 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 17.8% year-over-year (YoY) in May. This was the thirteenth consecutive monthly YoY decrease in inventory in Sacramento. Cash buyers accounted for 14.7% of all sales (frequently investors). Summary: This data suggests a more normal market with fewer distressed sales, more equity sales, and less investor buying - but limited inventory.