Sunday, January 21, 2007

Sacramento Regional Real Estate Trends for January 20, 2007

A watershed moment has been reached in Sacramento County. Half of all flippers are now taking a loss on their listings. That equates to nearly 10% of all listings! Yes folks, you heard it here first. Nearly one out of ten houses for sale in Sacramento County is a Flipper In Trouble:


Sacramento County’s lack of flipper performance is not mirrored in the surrounding counties:


Meanwhile, as we approach the end of January, inventory trends are beginning to rationalize. This week marked our third week-over-week increase for 2007, bringing four-county inventory up to 12,482:


There was an inventory increase in all the counties except El Dorado, which actually fell by 7 listings:


Asking price levels held steady, with the exception of Yolo's average, which continues to drop:


A final word: I still think the big story this year will be the credit crunch. In case you haven’t heard, there are a lot of rumblings going on in the subprime mortgage world. To follow this story, I highly suggest checking out these sources:

The Mortgage Lender Implode-O-Meter
- Aaron Krowne is keeping track of all the subprime lender failures. They’re failing at a rate of one per week.

Bakersfield Bubble – Crispy has been doing a great job of following these stories as well. Between him and Aaron Krowne, you’ll get the complete picture.

For some great analyis, read the comments by Tanta over on Calculated Risk. She’s got a great acerbic wit, so don’t argue with her if you have a thin skin (as Sippn recently discovered):

Information is Power, Which is Why You Don’t Get Any

Also, a guy named Paladin has a big story brewing. I'll be posting some links when his site is ready.

(*Update 2007-01-23: Link removed at Paladin's request.)

7 comments :

Sippn said...

Did I show thin skin? thought I recovered OK. Anyway I have a few fans over there, even from the other side of the political isle.

But I must say, got to check my "papers" before I write, they're a tough crowd.

Sippn said...

Regarding Paladin's article - I have little sympathy for the big lenders who are not watching or regulating themselves - they have the resources to protect themselves and find civil remedys.

I'd really like to see the FBI stay focused on political crime, small business crime, etc.

Max said...

Did I show thin skin? thought I recovered OK. Anyway I have a few fans over there, even from the other side of the political isle.

But I must say, got to check my "papers" before I write, they're a tough crowd.


Nah, most of the objects of Tanta's "affection" take it in stride, you included.

Max said...

I'd really like to see the FBI stay focused on political crime, small business crime, etc.

The problem is, these crimes eventually cost us all. When banks fail, the Fed bails them out using tax dollars. Back to that "Socializing risk, privatizing profit" argument.

I think the Feds should enforce the law, and I'm glad Paladin was able to get their attention. Now, if anything else happens...

patient renter said...

I can't wait to see what Paladin comes up with. I didn't hear how his meeting with the feds went.

Perfect Storm said...

Paladin's got the DRE and the FBI on Lincoln Crossing. Fraud is running rampant and Paladin is starting a site for bubble bloggers to report mortgage fraud.

Just look for home sales way above appraisal ascertain the financing situiation and then report to Paladin's new blog site when it is up.

patient renter said...

http://www.paladinreports.com/

The site is up although the fraud report submission form isn't finished yet.