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 November 2014, 11.5% of all resales were distressed sales. This was down from 12.1% last month, and down from 15.5% in November 2013.
The percentage of REOs was at 5.3%, and the percentage of short sales was 6.2%.
Here are the statistics for November.
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 increased 36.6% year-over-year (YoY) in November. In general the YoY increases have been trending down after peaking at close to 100%, however this was a larger YoY increase than in October.
Cash buyers accounted for 16.9% of all sales, down from 25.0% in November 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 6.1% from November 2013, and conventional equity sales were down 1.6% 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.