Sunday, January 28, 2007

Sacramento Regional Real Estate Trends for January 27, 2007

The statistical story this week continues to be the degradation of the Sacramento County Flipper:

Caught between rapid house prices declines (new and resale) and lack of equity, flippers in Sacramento are caught in a classic squeeze play. Welcome to 2007, the year of the "Flipper Squeeze". In the spirit of the Squeeze, I would like to introduce a new set of graphs highlighting flipper inventory:

(Note: "Flippers" include "Flippers In Trouble", so the lower the difference between the two, the worse their market is performing.) Notice the steady rise in FIT inventory in contrast to fluctuations in the overall inventory levels. This will be an interesting trend to follow over the next few months.

As for asking price levels, nothing too dramatic to report:

It looks like each county is still finding itself after the end-of-the-year shakeout. It might take a few more weeks before any real trends being to appear. The same goes for price-level inventory and overall inventory:

Lastly, I plan on doing a couple of analyses this week, one on the Flipper Squeeze, and the other on the auctions planned for next weekend in Elk Grove. So stay tuned!

1 comment :

Anonymous said...

nice article