Saturday, August 26, 2006

Sacramento Area House Listings Inventory For August 26, 2006

Inventory levels held steady over the last week, with a slight decline from 18,849 to 18,756:

Pending activity also held steady at 7.3% of market, which is only 1% higher than the Summer low of 6.3%:

So how are our leading indicators doing? After an interesting discussion over on Bubble Markets Inventory Tracking, I ran the following comparisons of flipper asking profit margin spreads between April and today:

More proof that the flipper market is deteriorating. In both counties, the percent of flippers asking for a 25-50% gain has dropped by half, and the flippers in trouble ratio has tripled. Interesting fact: If you are a flipper in Placer County that bought within the last few years trying to sell today, there is a 22%+ chance your are taking a loss. The number in Sacramento is not far behind at 20%.

I’ll add this indicator to my regular weekly statistics. I wonder how the flippers will do in the Fall?

Editor's note: Ooops. I did the posts out of order, so I'm tagging on the other graphs to the bottom of this post. Sorry about that!

1 comment :

Anonymous said...

Hey Max, Great job on your graphs. If we want to try this at home, what software/application are you using? Thanks for the info.