How is the real estate market doing in the Greater Sacramento Area? Let’s feel out one aspect of the market’s health today by looking at the level of distressed sales in multiple counties such as Sacramento, Placer, Yolo, El Dorado, San Joaquin and more. As you can see in the chart below, most counties in the Sacramento Region have a combined percentage of distressed sales (bank-owned and short sales) between 60-70%. Does it shock you to think that 6 to 7 out of every 10 sales are distressed? Data within a specific neighborhood or city may of course not reflect the trends listed in an overall given county (as in the clear case of the City of Davis in Yolo County), but the countywide panoramic picture is still important to keep in mind when keeping tabs on market health since regional or countywide trends can tend to impact smaller neighborhood markets over time.
What stands out to you about the figures below?
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Ryan, Great way of getting the point across with that chart. I have to ask what program did you use..Excel? Thanks!
Thanks so much, Michael. I simply calculated the percentages manually in MLS through a countywide search. I put together the table in MS Word. I see so many stats out there that seem to indicate the market is doing better than it really is. For example, I saw a chart the other day that showed REO sales in Sacramento County under 20%. That’s just not the case though when we take a real look at the numbers.
For nearly all of my appraisals my concentration of distressed sales is very similar to your stats. I’m also finding that inventory levels are dwindling to below stable (2-4 months), which hopefully will be a harbinger for better prices and a decline in the percentage of distressed sales in the near future.
It sounds like you’re on top of your market, Michael. Nice job!!
Those numbers are amazing Ryan. To think that 6-7 sales out of 10 are distressed! When people complain about our area which has been 30-40% distressed sales I always tell them about Sacramento. I hope things pick up there.
States like California, Arizona and Florida have all been hit really hard. It’s not been an easy time and unemployment has been high for the past few years too. We’ll make it because we are strong, but it’ll be nice to be on the other side one of these days (years down the road). Enjoy your 30-40%, Tom. 🙂