by Bill McBride on 9/11/2015 06:38:00 PM
Friday, September 11, 2015
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 16.2% from August 2014, and conventional equity sales were up 21.3% compared to the same month last year.
In August, 7.8% of all resales were distressed sales. This was down from 9.1% last month, and down from 11.7% in August 2014. This is the lowest percentage of distressed sales since they started breaking out distressed sales).
The percentage of REOs was at 3.5% in August, and the percentage of short sales was 4.3%.
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 14.9% year-over-year (YoY) in August. This was the fourth consecutive monthly YoY decrease in inventory in Sacramento (a big recent change).
Cash buyers accounted for 15.8% of all sales (frequently investors).
Summary: This data suggests a more normal market with fewer distressed sales, more equity sales, and less investor buying.