This data suggests healing in the Sacramento market. 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 March 2013, 37.5% of all resales (single family homes and condos) were distressed sales. This was down from 43.8% last month, and down from 59.6% in March 2012. This is the lowest percentage of distressed sales - and therefore the highest percentage of conventional sales - since the association started tracking the data.
The percentage of REOs decreased to 10.5%, and the percentage of short sales decreased to 27.0%.
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 sales recently, and there were almost three times as many short sales as REO sales in March.
Active Listing Inventory for single family homes declined 37.8% from last March. Cash buyers accounted for 36.4% of all sales (frequently investors), and median prices were up 30% year-over-year (the mix has changed). UPDATE: I recommend using the repeat sales indexes for prices as opposed to the median price calculated by the local MLS.
Total sales were down 17% from March 2012, but conventional sales were up 29% compared to the same month last year. This is exactly what we expect to see in an improving distressed market - flat or even declining overall sales as distressed sales decline, and conventional sales increase.
We are seeing a similar pattern in other distressed areas, with a move to more conventional sales, and a shift from REO to short sales. This is a sign of a recovering housing market.