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The market continues to cool in Sacramento

December 11, 2014 By Ryan Lundquist 6 Comments

The market is cooling, and that’s normal to see at this time of year. Yet beyond the expected chill of the season, the market as a whole is still clearly slowing down to become a buyer’s market. Let’s take a quick look today at real estate trends in Sacramento County so we can better understand what values are doing, and how to talk to clients about the market (don’t miss my 5 tips at the bottom). I’ll have a post on Tuesday to discuss the regional market and Placer County. Remember, you can use some of the graphs in your marketing too (see my sharing policy).

Two ways to read this post:

  1. Scan the talking points and graphs quickly.
  2. Grab a cup of coffee and spend a few minutes digesting what is here.

GRAPHS

(I was getting spam from the form, so email me)

1)  The median price dipped about 2% last month:

median price and inventory since 2013 - by sacramento appraisal blog

The median price declined from $270,000 to $265,000 from October to November in Sacramento County. Remember, it’s normal to see prices cool during this season, and the graph below helps illustrate that. Yet at the same time the overall market is definitely slowing regardless of the season.

median price in fall - by sacramento appraisal blog

2)  The median price is 33% lower than it was at the TOP of the market:

context for median price since the real estate bubble by sacramento appraisal blog

Since the bubble burst by sacramento appraisal blog

Let’s get some context. The median price hit its peak in Sacramento County in August 2005 at $395,000, and now it’s about 33% lower at $265,000. It’s hard to imagine prices were that high, but at the time buyers were willing to buy at those levels.

3)  Prices overall are softening

price metrics since 2014 in sacramento county

It’s important to look not just at the median price, but other metrics such as average price per sq ft and average sales price. This helps us get a stronger sense of the trends of the market so we don’t put too much weight on one metric.

price metrics since 2012 in sacramento county

4) Inventory increased to 2.75 months last month.

inventory in sacramento county  Since 2011 - by sacramento appraisal blog

Housing inventory increased  from 2.47 months to 2.75 months from October to November. This seems like a dramatic increase, but remember that inventory is the relationship between the number of sales last month and the number of current listings. Sales volume was REALLY low last month, so it’s natural to see inventory see an uptick. Having 2.75 months of housing inventory means there are 2.75 months worth of houses for sale right now (active listings).

months of housing inventory by sacramento appraisal blogGenerally speaking, the higher the price, the more inventory there is. Knowing what the market is doing at various price ranges can help us better market or value properties. The market doesn’t behave the same at every price level.

inventory in sacramento county - by sacramento appraisal blog

BIG POINT: The market has ultimately become much more sensitive to increases in inventory in recent years, so what happens with inventory in coming months will help set the stage for next year.

inventory during fall 2 - by sacramento appraisal blog

5) Sales volume was sluggish in November (lowest November in 7 years):

sales volume in Sacramento County since 2001

We had a slow November. In fact, sales volume in November hasn’t been this low since November 2007. Granted, volume this year was only down by 4% from November 2013, but it’s still important to note when volume is sluggish.

sales volume in fall through 2014 - by sacramento appraisal blog

Remember that sales volume always declines in the Fall months. This is part of the normal real estate cycle, and we see this every year. However, the decline in sales volume was slightly higher this past month than normal. Volume usually declines by about 15% from October to November, but this year was 22%. This isn’t something to write home about because it’s only one month of data. It’s simply important to explain what happened.

6) Cash sales are down 40% in Sacramento County in 2014:

cash sales and volume in sacramento county - by home appraiser blog

Cash sales since 2009 in Sacramento County by sacramento appraisal blog

Sales volume is down by 8.5% in 2014 compared with 2013. When we break down the numbers in Sacramento County, this means there have essentially been 1336 less sales this year compared to last year. The chief culprit in lower sales volume is the fact of 40% less cash sales in 2014 compared to 2013. Cash sales represented only 17% of all sales last month, which is far lower than 36% of all sales less than two years ago. This is great news for conventional, VA, and FHA buyers in that there is now more space to get into contract. Furthermore, non-cash sales are about 4% higher in volume this year compared to last year, which is also good news.

7) FHA sales were 25% of all sales last month (buyers are gaining power):

FHA and cash sales since 2009 in Sacramento County by sacramento appraisal blog

The market is still fairly competitive out there, especially for well-priced listings in good condition, but overall buyers continue to gain an edge in the market. One out of ever four buyers in Sacramento County last month used FHA financing. As you can see in the graph above, as cash declines, FHA has increased (conventional and VA are also increasing). Moreover, the market used to be about 33% FHA, so there is still some room for FHA to take an even greater share of the market.

8) It’s taking an average of 45 days to sell a house in Sacramento:

CDOM in Sacramento County - by Sacramento Appraisal Blog

It took an average of 45 days to sell a home in Sacramento County last month (that’s the same as the previous month). As you can see above, the market doesn’t behave the same in every price range. Generally speaking, the higher the price, the longer it takes to sell. There were only 5 sales above $1M last month, and they sold very quickly. For reference, current listings above $1M have been on the market for an average of 119 days. Take stats below $100K and above $1M with a grain of salt since data is limited in both price segments.

9) Distressed sales are only 5% of the entire market:

REOs and Short Sales since the bottom in Sacramento County

The market hit bottom in early 2012, and since then both REO sales (bank-owned) and short sales have seen a dramatic decline. The market simply is not driven by distressed sales any longer. In fact, only 5% of all sales last month were REOs and 6% were short sales. Investors did a great job buying up the distressed market over the past couple of years, and banks have likely done a better job with loan modifications too. Some say there is a “foreclosure wave” coming, but friends, people have been saying that for 6 years. When looking at the stats, there is a slight uptick in foreclosures this year in terms of volume, but it’s more like a rain drop rather than a wave.

10) There are many layers to the housing market

layers of the market sacramento county since 2001 - by sacramento appraisal blog layers of the market sacramento county since 2008 - by sacramento appraisal blog layers of the market sacramento county since 2011 - by sacramento appraisal blog

These are some of my favorite graphs because they help show that the market is made up of many layers. Housing trends are never just about supply and demand, but interest rates, the job market, cash investors, the economy, buyer confidence, availability of financing, etc…

Conclusion: The market is experiencing a normal Fall seasonal dip, yet at the same time the market as a whole is definitely cooling. Interest rates have seen a decline lately, which helps buyers gain more power in the market to a certain extent, but increasing inventory is the trump card in that higher inventory carries the most weight to drive values these days in Sacramento.

5 Quick Tips for Real Estate Agents:

  1. Price Correctly: Houses that are priced right are selling, but overpriced homes are sitting. The market is still very price sensitive, meaning buyers will pull the trigger quickly when the price is right.
  2. Current Listings: Remember to price according to the most current listings that are actually getting into contract. Of course you’ll want to pay attention to sales, but remember that sales are historical documents in that they tell us what the market used to be like whenever the sales got into contract. Today’s market might have softer prices compared to six months ago, so that’s why current pendings (and listings) can sometimes help give us a better temperature of what the market is like right now.
  3. Concessions & Credits: As inventory increases, buyers in some price ranges are going to be asking sellers for more credits for repairs and/or concessions in the purchase price. Preparing your sellers for this reality is important. Also, remember to be cautious about padding the price with concessions beyond what it can appraise for.
  4. Know FHA Standards: One in four sales were FHA last month, so it makes it all the more important to be in tune with what it takes for a property to meet minimum FHA appraisal standards. On a side note, if you do not know where a carbon monoxide detector should be installed, read here.
  5. Being a “Short Sale Specialist”: There are still short sales happening, but keep in mind only 6% of all sales last month were short sales (which translates to 64 short sales in November in the entire county). It’s still somewhat relevant for your website and business card to say “Short Sale Specialist”, but keep in mind there are lots of agents out there to service this limited pool of sellers. Consider marketing to sellers who have equity again and to buyers who went through a foreclosure or short sale several years ago and can now re-enter the market (these buyers are called “Boomerang Buyers”).

I hope this was helpful. Thank you so much for being here.

Sharing Trends with your Clients? If you want to share graphs online or in your newsletter, please see my sharing policy. Thank you for sharing.

Questions: How else would you describe the market? What are you seeing out there?

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Filed Under: Market Trends Tagged With: appraisal group in sacramento, appraisers in Sacramento, cash investors, House Appraiser, housing supply, inventory, less investors, market trend graphs, Median Price, real estate trends in Sacramento, Sacramento County, Sacramento Real Estate Market, sales volume, soft Fall in real estate

The slower season of Fall, price reductions, and seeing Sacramento’s market

November 13, 2014 By Ryan Lundquist 2 Comments

A few years back my doctor prescribed the drug prednisone. Have you ever taken it? I hope not. It’s a hardcore steroid that I needed at the time to address some stomach issues. While this drug worked like magic, it made me incredibly edgy, and I honestly had a hard time controlling what I said. It was as if the filter from my thoughts and mouth was partially removed. I know that sounds like an excuse, but it was reality. I’m normally a really nice guy, and I absolutely love people, but during those few weeks let’s just say there were some pretty ugly public interactions that definitely didn’t make the Facebook highlight reel.

the big picture in real estate 2 - image purchased by sacramento appraisal blog and used with permissionIn short, if you met me during one of those moments while jacked on prednisone, you might of thought I was a jerk. Yet that’s not who I am at all, which is clear when taking a wider view of my life. Now consider the housing market (you knew a transition was coming). If we only look at one tiny portion of the market, whether it’s median price, data from one zip code, or information from only one county, we might miss some of the big picture of what’s really happening. Two days ago we took a drive through the market in Sacramento County, but today I’d like to expand the trip to the entire region and Placer County. I’d love to hear your take of what is happening out there too. Comment below or send me an email.

Two ways to read this post:

  1. Scan the talking points and graphs quickly.
  2. Grab a cup of coffee and spend a few minutes digesting what is here.

GRAPHS

Note to New Readers: Thank you sincerely for being here. I wanted to give a quick heads-up about how things work. I write 1-2 posts per week. After the 10th of the month I have two big market posts where I discuss local trends. Yes, they are long, but they are full of good stuff. You can scroll quickly by reading the numbered points or really dig in. The first big monthly post talks through Sacramento County, and the second one shares Placer County and regional trends. Otherwise posts are more topical and they tend to appeal to a wide audience.

SACRAMENTO REGIONAL MARKET (Sacramento, Placer,  Yolo, El Dorado)

1) The regional market saw a 1.6% decrease in median price last month:

median price sacramento placer yolo el dorado county

The median price has been very flat throughout the Sacramento Region over these past six months, and last month it finally took a 1.6% dip. The median price has been hovering at $3100,000 in the regional market, but it’s now $305,000. This month the average sales also price declined by 2%, and the average price per sq ft decreased by less than 1%. It’s normal for prices to soften in the Fall market, but it’s also normal when inventory has increased and the market is generally slowing.

2) Sales volume is down by 8% this year compared to 2013: 

SALES volume in sacramento region - by home appraiser blog

There have been about 1800 less sales so far this year compared to 2013, which means sales volume is about 8% lower this year. Why is volume lacking? Let’s look at the graph below.

3) There have been 34% less cash sales this year:

cash sales and volume in sacramento region - by home appraiser blog

Cash investors took their foot off the gas pedal in our market during the second quarter of 2013, and we are still feeling the difference. There have been roughly 2000 less cash sales in MLS this year compared to last year (single family detached sales). Think about it this way: Less cash this year has resulted in higher inventory, less competition to get into contract, softening of prices, and a revelation of what demand is really like in the Sacramento area. The market is trying to normalize and figure out how to cope without the steroid of outside cash investors to boost values.

4) There are 2.65 months worth of houses for sale in the region:

months of housing inventory in region by sacramento appraisal blog

number of listings in Placer  Yolo El Dorado Sacramento - by home appraiser blog

number of listings in Placer Sacramento Yolo El Dorado county - Oct 2014 - by home appraiser blog

Housing inventory saw a slight dip last month from 2.72 months to 2.65 months. Before you sound the alarm that inventory is now declining, let’s look closer at the stats. The key here is there are simply less listings right now, which tends to cause housing inventory figures to decline. Remember, monthly inventory is calculated by dividing the number of listings on the 1st of the month by the number of sales for the previous month. There was actually about the same number of sales in October compared to September, but there are about 3.5% less listings (at the beginning of the month), which makes a difference in the numbers.

5) It is taking an average of 49 days to sell a house in the region:

days on market in placer sac el dorado yolo county by sacramento appraisal blog

It took 36% longer to sell a house last month compared with one year prior in October 2013. In other words, it took 49 days on average to sell a house in October 2014 compared to 36 days in October 2013. This is definitely a sign that we are in a different market, right? For context though, remember it was taking 90 days to sell a home three years ago in the Fall of 2011. As the graph above shows, the higher the price, the longer it takes to sell in the Sacramento Region. This is a constant trend, and something to be very aware of when adopting a marketing strategy to sell. There are very few sales under $100,000, so take that stat with a grain of salt (don’t give it much weight).

The Fall Season Trumping Price Reductions: Over the past 3-4 weeks the market really changed as the Fall season became much more pronounced. Not only are there less listings right now compared with last month, but there are actually less price reductions too. For months the market has been very much overpriced, meaning many properties have not been selling because they were simply priced at unrealistically high levels. Evidence of this was seen when logging in to MLS and seeing about 400 price reductions every day for several months through mid-October (and about 400 sales during the same time period). However, over the past few weeks the number of price reductions and sales have inched down closer to 200. Does this mean sellers are no longer lagging behind the trend of a slower market? Are properties finally priced correctly? Not necessarily. It seems the reality of the slowness of the Fall market has begun to set in, and less new listings and market activity means there will naturally be less price reductions. Some listings are sort of only technically on the market too in that they will simply ride out the duration of their listing without having any more reductions until they are officially withdrawn. Ultimately there are simply fewer new listings hitting the market right now, which means there will be fewer price reductions. Don’t get me wrong though, sellers still need to be very cautious about pricing, and I recommend pricing according to the most competitive listings that are actually getting into contract (as opposed to pricing according to older sales that might not reflect where the market is at right now). When you think about it, a slower Fall season could actually help give sellers some space to get more in tune with the reality of softer prices in the market.

PLACER COUNTY REAL ESTATE TRENDS

1) The median price saw a decline and is now at $375,000:

Placer County median price and inventory - by home appraiser blog

The median price in Placer County declined from about $385,000 to $375,000 from September to October. It’s normal at this time of year to see prices soften during the Fall months, so I don’t recommend freaking out. There are simply less buyers looking in Fall, so prices tend to dip as a part of the normative real estate cycle. Of course the backdrop to this stat is that values in the regional market are definitely slowing down regardless of the Fall season.

2) Housing inventory saw a slight decline and is at 2.75 months:

Placer County housing inventory - by home appraiser blognumber of listings in PLACER COUNTY - by home appraiser blog

Monthly housing inventory took a dip last month from 2.92 months to 2.75 months. Why did it go down? Because there were less listings that hit the market in October compared with September (fairly normal for this time of year), and at the same time there were more sales. Remember, housing inventory tells us how many months of properties are listed on the market. An inventory of 2.75 basically means there are 2.75 months worth of active listings available for buyers.

months of housing inventory in placer county by sacramento appraisal blog

The interesting thing about inventory is that it’s not the same at every price level. There might be 2.75 months of housing supply right now in Placer County, but the market is more competitive toward the lower end of values, while there is more selection at higher price levels. This is a very normal trend in real estate, but it reminds us there can be different trends happening at different price ranges.

3) Sales volume is very normal in Placer County right now:

Placer County sales volume - by sacramento appraisal blog

When considering October 2014, there were actually more sales compared to the prior two years. In the next 30 days though we can expect volume to see a dip if the market unfolds like it has these past two years. December through February are slower months, which is evidenced by the low points on the graph above.

4) It’s taking an average of 54 days to sell a house in Placer County:

days on market in placer county by sacramento appraisal blog

It took one week longer to sell a house last month in Placer County compared with the previous month. Most price ranges did see an increase in cumulative days on market, which is normal, but sales above $750,000 were much higher than usual last month. Properties in this price range have normally been taking about 90 or so days to sell. This doesn’t mean the market changed very quickly in just one month though. It simply means the 17 sales that closed above $750,000 in October took much longer to sell for one reason or another.

When we start to get the bigger picture of how the regional market is moving, it can sharpen our understanding of the market and position us to be an incredible resource to clients. I hope this was helpful.

Sharing Trends with your Clients? If you want to share graphs online or in your newsletter, please see my sharing policy. Thank you for sharing.

Questions: How else would you describe the market? What are you seeing out there?

If you liked this post, subscribe by email (or RSS). Thanks for being here.

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Filed Under: Market Trends Tagged With: cash investors, housing supply, how long is it taking to sell, inventory, less cash, less investors, Median Price, Placer County, Placer County Market Trends, placer county trend graphs, pricing strategy, sacramemento region housing, sacramento appraisers, sacramento regional housing market, sales volume, Yolo County

10 sentences to describe Sacramento’s regional housing market

October 16, 2014 By Ryan Lundquist Leave a Comment

Have you ever attended a presentation and thought, “Wow, there wasn’t any reason why that needed to be an hour. The speaker could have said everything in 15 minutes.” This is why speaking is an art form. It takes real skill and time to hone a presentation, yet still pack the same punch in a shorter amount of time. The same holds true for writing. Twice a month I have two big market posts, but today instead of writing paragraphs below each graph, I’m simply sharing an image and then one sentence. Here are 10 sentences to describe Sacramento’s regional housing market (and Placer County). Any thoughts? Enjoy.

GRAPHS

SACRAMENTO’S REGIONAL MARKET

1) The median price has been the same for 5 months in a row ($310,000).

median price and inventory in sacramento placer yolo el dorado county

2) Housing inventory increased last month to 2.72 months (inventory isn’t the same at every price level).

months of housing inventory in region by sacramento appraisal blog

3) It took an average of 45 days to sell a house last month.

days on market in placer sac el dorado yolo county by sacramento appraisal blog

4) Sales volume is down about 9% this year compared to last year.

SALES volume in sacramento region - by home appraiser blog

5) There have been 36% less cash sales in 2014 compared to last year.

cash sales and volume in sacramento region - by home appraiser blog

6) The number of listings increased again last month.

number of listings in Placer Sacramento Yolo El Dorado county - July 2014 - by home appraiser blog

PLACER COUNTY

7) The median price has been fairly flat in Placer County ($386K).

Placer County median price and inventory - by home appraiser blog

8) Inventory is hovering just below 3 months in Placer County.

Placer County housing inventory - by home appraiser blog

months of housing inventory in placer county by sacramento appraisal blog

9) It took an average of 47 days to sell a home last month in Placer County.

days on market in placer county by sacramento appraisal blog

10) Sales volume is at fairly normal levels in Placer County.

Placer County sales volume - by sacramento appraisal blog

wright-reportThe Wright Report: By the way, I contributed a few thoughts to The Wright Report, which is the most exhaustive local real estate report I know of. If you need some resourceful bathroom reading, I suggest downloading it. You can read it carefully or maybe take a quick stroll through the graphs. I’m honored to pitch in a few thoughts, but that’s not why I’m sharing it. I really like what Joel Wright puts together, and it’s a great service to the real estate community. When we understand the market and how it’s moving, it’s good for business and for our clients. Download and enjoy.

Sharing Trends with your Clients? If you want to share graphs online or in your newsletter, please see my sharing policy. Thank you for sharing.

Questions: Do you like the format for this post? I’d love to hear your feedback. How else would you describe the market?

If you liked this post, subscribe by email (or RSS). Thanks for being here.

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Filed Under: Market Trends Tagged With: appraisals Sacramento, appraisers in Sacramento, FHA, Home Appraiser, House Appraiser, housing trends, inventory, less investors, Market Trends, Median Price, Real Estate Market in Sacramento, sacramento housing market

10 quick talking points for Sacramento’s housing market

July 15, 2014 By Ryan Lundquist 2 Comments

Imagine you’re in line at Starbucks with a friend, and your friend asks you about the housing market. How would you describe what the Sacramento market is doing? It’s easy to speak in generalities about it being a good time to buy or sell, but when you get more specific, something powerful happens. You begin to sound like a pro. Check out ten quick talking points to help explain how the market is unfolding.

Two ways to read this post:

  1. Scan the highlighted text and graphs quickly.
  2. Grab a cup of coffee and spend a few minutes digesting what is here.

free graphs from sacramento appraisal blog

1)  The median price has been flat for the past couple of months:

Median price and inventory since 2011 by sacramento appraisal blog

The market over these past six months has seen a normal seasonal uptick, but values have been flattening out a bit lately. Different neighborhoods are experiencing different dynamics of course, but the overall market is more or less flat. The median price in Sacramento County is currently $270,000.

2) The number of listings has increased since January:

Active listings in Sacramento County by sacramento appraisal blog

It’s normal in real estate to see listings increase during the Spring and beginning of Summer, but it’s still good to be able to explain that the number of active listings in Sacramento County was closer to 2200 in January and is now over 3000. This means buyers have more opportunities to get into contract.

3) Inventory increased again last month and is close to 2.2 months:

inventory in sacramento county - by sacramento appraisal blog

Housing inventory increased again this past month and is now at 2.16 months of housing supply. This means there is just over two months worth of houses listed for sale on the market compared to the number of sales last month.

months of housing inventory by sacramento appraisal blog

Keep in mind two months is still very low, which means there is still quite a bit of competition to get into contract. The graph above illustrates how much inventory is in each price segment, and there is clearly stiff competition below $400K. This underscores the reality that different price segments can experience different trends in the same market.

4) Sales volume is down 14% from last year:

sales volume in Sacramento County since 2008

sales volume in June in Sacramento County since 2008

Sales volume this past quarter is down 14% compared to the same time last year, but the good news is we’ve had three strong months of sales in a row. This is an especially welcome phenomenon after a couple dismal months in the beginning of the year. There were slightly more sales in June compared to May, but not really anything to write home about.

5) FHA buyers are gaining more power:

FHA sales in Sacramento County by sacramento appraisal blog

It has been much easier for FHA buyers to get into contract these days compared to the beginning of 2013 when it was incredibly difficult. In fact, FHA sales increased by 6.4% when comparing Q2 2013 to Q2 2014. If you haven’t brushed up on FHA minimum property requirements, it may be a good time to do so since FHA is becoming more relevant again.

6) Cash sales have declined by 13% since last year:

Cash sales since 2009 in Sacramento County by sacramento appraisal blog

FHA and cash sales since 2009 in Sacramento County by sacramento appraisal blog

Cash sales are down 13% county-wide compared to where they were one year ago (down 16% from their peak). There has been a dramatic decrease of cash in the Sacramento market, and it has really made the rest of the market adjust or “normalize” so to speak. What does it look like to be a market that is not driven by cash investors from outside of Sacramento? That’s what the housing market is trying to figure out.

cash sales and volume in sacramento county - by home appraiser blog

This graph shows cash sales from January to June in both 2013 and 2014. What do you notice? Cash volume was about two times higher (47%) in 2013 compared to 2014, whereas there have been more non-cash sales this year. When you’re talking to clients about how the market has changed, this is an X-factor. In other words, if cash volume was still as high as it was last year, inventory would be incredibly low, and the market would feel much like it did in early 2013.

7) It’s taking 35 days on average to sell a house:

CDOM in Sacramento County - by Sacramento Appraisal Blog

On average it’s taking just over one month (35 days) to sell a house in Sacramento County. This trend is about the same for the entire region (37 days), but I’ll get to that on Thursday. Generally speaking, the higher the price, the longer it takes to sell. Keep in mind there were only 12 sales between $750,000 to $1M, so don’t put too much weight in that category.

8) Interest rates are still flirting with the 4% range:

interest rates by sacramento appraisal blog since 2008 interest rates by sacramento appraisal blogInterest rates took another slight dip last month, but really rates have been flirting with the lower 4s all year. What happens with interest rates will directly impact affordability, which really matters since values are much higher than they used to be. The market still feels fragile, so if rates shoot up too quickly, it could be bad news for values. It’s doubtful The Fed would increase rates aggressively right now, but who knows.

9) Today’s market is simply different than the market in 2013:

layers of the market since 2011 sacramento county - by sacramento appraisal blog layers of the market sacramento county - by sacramento appraisal blog

The real estate market has many “layers” that impact value. The keys drivers for the latest real estate boom were cash investors, historically low interest rates, and incredibly low inventory. Now the “layers” of the market have shifted though where inventory is increasing, interest rates are no longer in the 3s, and cash investors have sincerely stepped back their game. This means we have a real estate market that is much more sensitive to the health and strength of the local economy instead of being driven by rates and out-of-town investors. Key factors to watch over the next two quarters are inventory, sales volume, and interest rates.

10) REO sales are ten times lower than what they used to be:

REOs and Short Sales in Sacramento County

REOs and Short Sales Percentage and Volume in Sacramento County

Sacramento County used to feel like Foreclosureville, but the market is simply no longer distressed. Both REO and short sales are hovering at about 7% of the market. This is very low considering in the first quarter of 2009 REO sales were literally ten times what they are now.

One Last Bonus Chart:

Q2 2013 and Q2 2014 comparison in Sacramento County

Summary: Our market was on fire for 18 months after values bottomed out in early 2012, but over the past year the market has really slowed, and is ultimately trying to figure out how to be normal again. The beginning of 2014 has shown a typical seasonal uptick, but overall the market feels as if it is cooling more than not since some properties are being priced at similar levels to the most recent sales (or slightly lower in some areas). The market is competitive because inventory is still low, but at the same time it is very price sensitive. Buyers are not biting on listings that are priced too high, and they are not willing to pay top dollar for outdated homes either. In a hot market buyers tend to look past some negatives when inventory is really tight, but that’s becoming less common now. By the way, I’ll share some Placer County and regional trends in a few days.

Sharing Trends with your Clients? If you want to share graphs online or in your newsletter, please see my sharing policy. Thank you for sharing.

Questions: How else would you describe the market? I’d love to hear your take.

If you liked this post, subscribe by email (or RSS). Thanks for being here.

Share:

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Filed Under: Market Trends Tagged With: active listings, cash investors, FHA buyers, first-time buyers, foreclosures, Home Appraiser, House Appraiser, housing inventory, housing supply, interest rates, investment funds, less investors, Market Trends, Median Price, REO sales, Sacramento Real Estate Market, sales volume, Short Sales, trend graphs

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Blog Archives: 2009 – 2021

Lundquist Appraisal Links

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Most Recent Posts

  • How much have prices risen since the bottom of the market?
  • How long can this market keep going?
  • What is your housing persona?
  • Rapid price growth & the Gilmore Girls next door
  • Are first-time buyers targeting 2-4 unit properties?
  • Stale real estate headlines & buyers flocking to El Dorado County
  • My new sewer line adds huge value, right?
  • The housing market nobody predicted
  • Real estate trends to watch in 2021
  • You carried me & a spreadsheet for Christmas

Disclaimer

First off, thank you for being here. Now let's get into the fine print. The material and information contained on this website is the copyrighted property of Ryan Lundquist and Lundquist Appraisal Company. Content on this website may not be reproduced or republished without prior written permission from Ryan Lundquist.

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The information on this website is meant entirely for educational purposes and is not intended in any way to support an opinion of value for your appraisal needs or any sort of value conclusion for a loan, litigation, tax appeal or any other potential real estate or non-real estate purpose. The material found on this website is meant for casual reading only and is not intended for use in a court of law or any other legal use. Ryan will not appear in court in any capacity based on any information posted here. For more detailed market analysis to be used for an appraisal report or any appraisal-related purpose or valuation consulting, please contact Ryan at 916-595-3735 for more information.

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