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 October 2014, 12.1% of all resales were distressed sales. This was up from 11.1% last month, and down from 16.7% in October 2013. The slight increase was probably seasonal.
The percentage of REOs was at 6.1%, and the percentage of short sales was 6.0%.
Here are the statistics for October.
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 that started in 2012 (blue) as the percentage of distressed sales declined sharply.
Active Listing Inventory for single family homes increased 29.1% year-over-year (YoY) in October. This was the smallest YoY increase in June 2013, and the YoY increases have been trending down after peaking at close to 100%.
Cash buyers accounted for 20.6% of all sales, down from 23.9% in October 2013 (frequently investors). This has been trending down, and it appears investors are becoming much less of a factor in Sacramento.
Total sales were down 0.8% from October 2013, and conventional equity sales were up 4.6% compared to the same month last year.
Summary: Distressed sales down sharply, cash buyers are down significantly, and inventory up significantly (but increases slowing). This is what we'd expect to see in a healing market. As I've noted before, we are seeing a similar pattern in other distressed areas.