This data suggests healing in the Sacramento market, although some of this is due to investor buying. 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 December 2013, 18.8% of all resales (single family homes) were distressed sales. This was up from 15.5% last month, and down from 51.5% in December 2012.
The percentage of REOs was at 7.1%, and the percentage of short sales decreased to 11.7%. The increase in December was seasonal (happens at the end of every year).
Here are the statistics.
![Distressed Sales](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0XgCtUkQnFhtt3IiCxjWTLfTVtnxLTmRwj7ePxzS-8RoSOrTLH_4Z9K_3mrkhKUn3R6CDr42sAAlEjmilX7h8Fi9haU6GDKL9qPsUcXCa_YmAEGxdLJC5BJp9npJCJ-Jmt0N8/s320/SacDec2013.jpg)
This graph shows the percent of REO sales, short sales and conventional sales.
There has been a sharp increase in conventional sales recently (blue).
Active Listing Inventory for single family homes increased 44.2% year-over-year in December. This is the eighth consecutive month with a year-over-year increase in inventory.
Cash buyers accounted for 19.5% of all sales, down from 25.0% a year ago (frequently investors). This has been trending down, and it appears investors are becoming less of a factor in Sacramento.
Total sales were down 20% from December 2012, but conventional sales were up 33% 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 increasing.
As I've noted before, we are seeing a similar pattern in other distressed areas. This suggests what will happen in other areas: 1) Flat or declining overall existing home sales, 2) but increasing conventional sales, 3) Less investor buying, 4) more inventory, and 5) slower price increases.
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