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 June 2014, 13.3% of all resales (single family homes) were distressed sales. This was down from 14.7% last month, and down from 26.5% in June 2013. This is the post-bubble low.
The percentage of REOs was at 7.2%, and the percentage of short sales was 6.1%.
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 over the last 2+ years (blue).
Active Listing Inventory for single family homes increased 91.0% year-over-year in June.
Cash buyers accounted for 19.8% of all sales, down from 29.9% in June 2013, and down from 20.5% last month (frequently investors). This has been trending down, and it appears investors are becoming much less of a factor in Sacramento.
Total sales were down 3.7% from June 2013, but conventional equity sales were up 13.5% 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.
Summary: Distressed sales down sharply (at post bubble low), Cash buyers down significantly, normal equity sales up 13.5% year-over-year, inventory up significantly (price increases should slow). If I was "wishcasting", this is what I'd like to see!
As I've noted before, we are seeing a similar pattern in other distressed areas.