Monday, July 14, 2008

Sacramento Regional Real Estate Trends for July 12, 2008

Nice inventory spike this week, but not trend defining. The market stress indicators showed continued mild decline, with SITs in Sacramento County now outnumbering other inventory for the first time. Yolo County is now over 40% SITs as well.

On a side note, I'll be traveling in the Los Angeles area this week, so I may post some observations from there if I get the chance. Things are definitely slow at the Sac Airport: this is the first time I literally had no wait either checking my bag or getting through security. And on a Monday morning no less. The airport is dead.


Deflationary Jane said...

Go Go Yolo my old home town!

I expect Yolo to get very bad, especially woodland and winters. Only thing keeping those towns alive was the ability to commute into Davis or Sac. Both also had surprising price run ups. Gas prices are writing their tombstones for them.

Now that Davis is showing some sweet declines **hint hint check the listing vs closing prices**, investors will keep their powder dry and lay in wait for openings the best rental market which is Davis. Well they'll do that if they are smart but that asking a lot of investard class.

I looked at a house over the weeknd. I don't know if I could get a 22k mortgage as that if how much much short of a cash offer we'd be. What do you do in cases like that, besides wait of course?

BottomFeeder said...

"The airport is dead". That means it is a great time for Sac County to raise the fees to all the airlines so they can pay for their billion dollar plus expansion.

Anonymous said...

First time poster, long time reader!

I have been closely following elk grove for a few years, and usually notice every new house that pops up in inventory in the east elk grove.

Long story short, i think either the REO banks are trying to fake a "inventory dry up" OR they know something we dont(new bills/bailouts/somthing). I know its near impossible for all banks to coordinate a fake "dry up" by holding listings back, but who knows.

I have not seen that any REOs pop up in last 2-3 weeks in my search criteria, and before,I was seeing 2-3 every week. But I am certain there are lot of these REOs in shadow inventory.

At any rate, I am not buying into it, and betting my money that we ll see another 10% decline by end of year... who knows...


Unknown said...

Granted the housing in the 4 county area is bad but things were way out of wack for the last couple of years. I have heard that things will continue to drop until 2009-2010. Things are still moving around here but not like the insane pace in 2000+.
Also, I am glad that things have slowed down at the airport. It makes it much more pleasant to travel. Maybe you came during the(900+)forrest fire. That was horrible and everyone was smart to leave Sacramento and go to some place where you could breathe!