Monday, October 22, 2007

Sacramento Regional Real Estate Trends for October 20, 2007

One big story this week has to be the decline in asking prices. The median asking price in Sacramento County has reached $300,000 for the first time in several years. It has fallen 21% since April 2006. Notice the exponential increase in the inventory of $0-$200K priced houses during the last few months as well:

On the overall inventory side, there was actually a slight increase over last week:

And, last but not least, after a slight moderation in growth rate, Sellers In Trouble inventory made another strong jump this week. Nearly one in four houses on the market in Sacramento County are now asking to take a loss:

SIT asking price losses in Sac County now total about $170,000,000, with an average loss of 17% of the previous sale price:

The flipper metric continues to improve, which indicates that bank-held REO property has yet to hit the market in a significant way. Since foreclosures are recorded as sales by the county, these houses will be classified by my data system as "flippers" when they're listed for sale:


... said...

At first I thought the flipper stats were kind of odd, showing 15% or so now as flippers vs 20% a year ago, but doing the math - 15% is about 2700 homes?

With most of the market speculation flipper "industry" gone, most of the supply of flippers will soon be REOs - the traditional fixer "industry". that could also reduce the FIT numbers or change the mix assuming some of the homes had equity but just impossible payments.


patient renter said...

Good stats this week. Max, I really am impressed with your "system", as you call it. I haven't seen similarly comprehensive stats for any other metropolitan area. Very good work :)

Anonymous said...

The nomenclature recalls the adage from high school....

SIT on it....and twirl!

$170,000,000....that recalls an old movie from high school...

"Up in Smoke"! It is a Cheech and Chong kind of market.

Srinivas Kodali said...

What's the builders cost to build semi-custom McMansions ?

Anonymous said...

Building costs aren't that bad, I wouldn't think, but the lot prices are outrageous, in my opinion.

We were supposed to close tomorrow, but a clerical error has caused the date to be pushed back to Friday.

Maybe that's a sign that we should back out before it's really too late!