Thursday, June 15, 2017

Sacramento Housing in May: Sales up 7%, Active Inventory down 14% YoY

by Bill McBride on 6/15/2017 01:45:00 PM

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 May, total sales were up 7.4% from May 2016, and conventional equity sales were up 9.8% compared to the same month last year.

In May, 4.2% of all resales were distressed sales. This was down from 4.7% last month, and down from 7.0% in May 2016.

The percentage of REOs was at 2.1%, and the percentage of short sales was 2.1%.

Here are the statistics.

Sacramento 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 13.9% year-over-year (YoY) in May.  This was the 25th consecutive monthly YoY decrease in inventory in Sacramento.

Cash buyers accounted for 14.6% 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.