Sloping Home Sales: Sacramento as an a Case Study

The Sacramento Association of REALTORS(R) is now breaking out monthly resales by equity sales (conventional resales), and afraid sales (Short sales and REO sales). I’m following this series (as an example) to see changes in the mix. They started breaking out REO sales endure year, but this is only the fourth monthly report with short sales. About 63 percent of all resales (single family homes and condos) were distressed sales in September. Conventional and short sales have held steady, but foreclosure resales were lower in August and September. There are many reports of more foreclosures coming, and the number of foreclosure resales should pick up later this year.

Total sales in September were off 18% compared to September 2008; the fourth month in a row with dying YoY sales. On financing, over half the sales were either all cash (25.2%) or FHA loans (27.6%), suggesting most of the action in afraid bubble areas dreamy Sacramento is first-time home buyers using government-insured FHA loans (and taking upper hand of the tax credits), and investors paying cash.

Sacramento-area home sales decreased 4 percent in September compared to a month ago — and were 24 percent decrease than September 2008. But bargain-priced homes and lower interest rates attracted homebuyers in recent weeks, with pending sales increasing 9 percent, especially with the longer-than-average time needed to complete foreclosure and short-sale transactions, said Michael Lyon, paramount director officer of Lyon Real Estate in Sacramento. The available homes on the market declined to 5,761 in September, a 52 percent reduction from a year ago — and a 62 percent plunge from the record-high in August 2007. It’s failing news for buyers, but a blessing for household sellers, giving hope that home prices will increase.

Sacramento County is a bargain-hunter’s dream, with 56 percent of the homes selling for decreasing than $200,000 in September, and only 37 percent in the $200,000 to $400,000 cost range. The median home cost — meaning half the homes sold for more, the other for less — was $180,000, a 3.7 percent decline from August and decrease than the $192,000 median cost of a year ago. A reported 1,537 homes changed hands, an 8 percent dwindle from August.

About seven of the 10 homes sold between $200,000 to $400,000 in Placer County, and only 10 percent were decreasing than $200,000. The median household cost was $295,000 in September, a dwindle from the $305,000 in August and decrease than the $329,000 a year ago.

El Dorado County is still the highest-priced county in the region, and one of the hardest hit for homeowners looking to sell. The median household cost was $299,000 endure month, compared to $305,000 in August — and 16.9 percent lower than the $360,000 a year ago. Almost as many homes sold for less than $200,000 (23 percent) as for more than $400,000 (26 percent).

In Yolo County, sales declined 8 percent, and prices followed. The county’s median home price dropped 10.6 percent to $237,000 in September from a year ago. However, the median household cost is feeling 25.5 percent from the $318,000 in August 2008. About half the homes sold in the $200,000 to $400,000 cost range endure month.
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