by Bill McBride on 6/13/2016 08:11:00 AM
Monday, June 13, 2016
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.