Monday, August 13, 2007

Sacramento Regional Real Estate Trends for August 11, 2007

After three weeks of zero growth, inventory shot up by 2.2% to 18,132 in the four-county Sacramento region:


Good thing I didn't call the top three weeks ago. Boy, I would have looked stupid!

All of the counties showed inventory jumps over last week, with increases in the $200K-$300K range featuring prominently. Yolo saw a huge jump in the $350K-$400K range, and El Dorado saw a nice recovery jump in the $700K-$800K range as well:


Asking prices continued their overall downward trend:


Flipper inventory continues to hold steady, with FITs making up 14% of the total resale market in Sacramento:




13 comments :

Sippn said...

Looks like they all came back rested from vacation and have to pay off the bills!

So... who increased the pool more, distressed props or not?

Gwynster said...

I'm also seeing a lot in the 250k to 350k in Woodland as everyone runs to the exit.

Only things that seem to be moving are at the lower end and even then they are coming back on the market as financing falls through.

I viewed a 310K 1900's house and told the agent I wouldn't be interested at anything over 220k. He's reply was "if you are serious, I'll give it a try". My offer wasn't low enough - wow.

Darth Toll said...

I'm not sure if REO's increased the pool or not, but like gwynster, I'm seeing an awful ot of properties come back on after being pending. Most likely this is due to financing falling through, although there could be some cold feet action there as well.

How any buyer could look at the state of the market and think that this is a good time to buy is a mystery to me (Realtor marketing?), but it appears the credit market will impose some restraint even if the individuals do not.

Diggin Deeper said...

If this market gets much worse the employment market will begin to strain. Most of the construction and RE employment losses aren't showing up on the rolls, but I suspect they will eventually take their toll regardless if they're reported or not. Looks like the state's going to do less work with more people unless they drop their employment numbers to coincide with the tax revenue losses.
All this will do is put more pressure on the inventory numbers.

smf said...

"Most of the construction and RE employment losses aren't showing up on the rolls"

Why should they?

As I stated before, from personal office experience, it has been remarkable to see so many immigrants working in construction in the last few years. If they were here illegally, their disappearing job won't be counted.

Ditto for others in the RE industry. As far as I know, you are not counted on the rolls if self-employed.

Gwynster said...

So many people in this area are contract employees anymore, even outside of the RE/construction industry.

Hell, I worked contract to contract for yrs (93-00 in IT and 88-92 in film) I now people still working as really well-paid temps and these are paralegals and folks with law degrees! These people will never show up on the unemployment rolls.

I agree with SMF, we can loose a lot of jobs and I mean a whole lot and have it not effect the official numbers.

Gwynster said...

wow really quiet here. No one is trying to dispute your stats anymore.

I think we need to play ugliest house on the market. Gimme a sec and I'll start.

Gwynster said...

OK I had a treasure from my neck of the woods

MLS# 70072908

Possibly one of the worst areas for a rental property, the structure needs massive work, and the rent on 2 crappy 2br/1ba apts will not remotely cover the monthly nut.

Max said...

I don't know why you don't like it Gwyn. I mean, it's close to shopping and everything:

Pics

Gwynster said...

LOL They are hoping to find anyone stupid enough to buy investment property at 285x rent.

Rob Dawg said...

I dunno Gwynnie. I sold my inverstment rental for 273x so somebody had to buy it. The person who bought? A realtor.

Rob Dawg said...

BTW.

Inverstment was not a mispelling. Think the inverse of investment.

DrDoom said...

Very helpful blog site. Thanks to everyone for their contributions.

I am working on the impact of the local housing decline on other industries. I am searching for leading indicators that are timely and can predict the downturn length and depth. I have OFHEO price index and CBIA Single Family starts history back 20 years. I can not find Sacramento area historical foreclosure type information on line. Does anyone know a source? Agentbubble's Distressed Property Update is great it just doesn't go back far enough.