Monday, November 20, 2006

Sacramento Regional Real Estate Trends for November 18, 2006

Inventory continues to slouch toward the inevitable end-of-the-year drop:

I expect to see an ever increasing rate of decline as we head into January. Bottom line: who wants to buy a house in December anyway? At least you can tell if the roof leaks.

Like inventory, at least one asking price metric is slowly creeping downward in all four counties:

This is probably due to the decrease in more expensive inventory rather than asking price reductions; though I am sure both come into play:

And for those who have to sell, their position continues to deteriorate:

In both Sacramento and Placer Counties, almost 30% of all flippers are in the red:

Editors’ Note: With the holiday coming up, the trend posting might not happen next week. It will return the following week.


Anonymous said...

Max, here is a trend for you..... Sacramento had two auctions last night (Sunday Nov. 19). Over 30 homes on the block and I understand that only 2 sold! The actioneer in Roseville was encouraging people to bid on one house because the negative cash flow "would be so small". The bidders chuckled or looked away. No one is buying property today unless it has positive cash flow. There will be no appreciation in Sacramento for 10-years. Positive cash flow is the only return available.

Max said...

Yeah, I heard about that. Somebody named 'Pete' was there and wrote me a nice piece about it.

Stay tuned. :)