Saturday, June 17, 2006

Sacramento Region Home Listings Inventory for June 16, 2006

For the last week, pending inventory increased at the same rate as regular inventory. Pending inventory increased in Sacramento County from last week to 1,257 listings, and remained steady as a percentage of total listings at 10.8%. As of June 16, there were 10,374 homes for sale in Sacramento County, which is about an 8-month inventory:

The Sacramento Bee released the median selling price data for May, so just for grins I compared their numbers with my median asking price data:

Median selling price data are fairly meaningless since you usually aren’t given other important info like price/sqft to qualify the data. It would appear from this table, however, that sellers are dropping their prices during negotiations, or more houses are selling below the asking median than above it. Either way, there is downward price pressure on the market.

Inventory continued to grow unabated this week in the four-county Sacramento Region for the week of the 16th. Inventory rose to 16,430, which puts us within 1,500 of the all-time population adjusted inventory record of 17,913.

Just to mess with the inventory watchers, the Bee also released another inventory benchmark to shoot for:

Then, approximately 2.5 percent of the region's residential units were for sale. Since (1992), builders have added approximately 210,000 new single-family homes, condos and apartments to the four-county region's housing supply, according to the Construction Industry Research Board. The number of homes for sale today would have to swell to almost 19,000 to equal the impact of the 13,507 for sale in 1992.

If 19,000 units are 2.5% of the regions residential units, then there must be over 750,000 units in the four-county region. Thanks to ocrenter, we know that the population in Sacramento in 1992 was 1.55 million, and today it is 2.1 million. That would mean that population has grown 35% in the last 14 years, while the number of units has climbed by 39%.

Of course, we don’t know how many of these are rental apartments, or how family size has changed since 1992. Either way, there are 10% more units per-capita in Sacramento now than in 1992, which can't be a good thing for the market.

If listing inventory keeps growing at the current rate, it should hit the 17,900 level by the second week of July, and the 19,000 level in early August, at the very latest:

1 comment :

Anonymous said...

What is all that hissing that I hear?

Welcome to South Elk Grove home of the slow market, houses overpriced 50%, high gas prices, wannabe middle class buyers on goofball no doc interest only adjustable rate flexible pay mortgages and no decent paying jobs in this south area slum to be.

You want to see UGLY?

Go to the following link:

496 houses in preforclosure in Elk Grove up from 231 homes in the middle of May.