by Calculated Risk on 7/16/2017 09:10:00 AM

During the recession, I started following the Sacramento market to look for changes in the mix of houses sold (equity, REOs, and short sales). For several years, not much changed. But in 2012 and 2013, we saw some significant changes with a dramatic shift from distressed sales to more normal equity sales.

This data suggested healing in the Sacramento market and other distressed markets showed similar improvement.  Note: The Sacramento Association of REALTORS® started breaking out REOs in May 2008, and short sales in June 2009.

In June, total sales were up 0.5% from June 2016, and conventional equity sales were up 2.5% compared to the same month last year.

In June, 4.2% of all resales were distressed sales. This was down from 4.7% last month, and down from 7.0% in May 2016.

The percentage of REOs was at 1.6%, and the percentage of short sales was 1.6%.

Sacramento Realtor Press Release: Most monthly sales since July 2009, median price continues to increase

June showed a 5.4% increase in sale from May, up to 1,824 sales from 1,731. This is the most monthly sales since July 2009, when that month closed with 1,848. Compared with 2016, current number is also an increase, rising .5% from the 1,815 sales of June 2016.
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Total Active Listing Inventory increased 8.8% from 1,935 to 2,105 for the month, but is a 18.3% drop from the 2,577 inventory of June last year. The Months of Inventory increased slightly for the month from 1.1 Months to 1.2MMonths. A year ago the Months of inventory was 1.4. Listings published for the month decreased .3% from 2,385 to 2,377. “Listings published” signifies all listings that came on the market for the current month. Of the 2,385 listings that came on the market for the month of June, 870 were still listed as active, 1,203 are currently pending sales, 177 were already sold and 127 are either off the market, expired or other.

The Average DOM (days on market) for homes sold dropped from 20 to 18 days.

Here are the statistics.

Click on graph for larger image.

This graph shows the percent of REO sales, short sales and conventional sales.

There has been a sharp increase in conventional (equity) sales that started in 2012 (blue) as the percentage of distressed sales declined sharply.

Active Listing Inventory for single family homes decreased 18.3% year-over-year (YoY) in June.  This was the 26th consecutive monthly YoY decrease in inventory in Sacramento.

Cash buyers accounted for 12.3% of all sales - this has been generally declining (frequently investors).

Summary: This data suggests a normal market with few distressed sales, and less investor buying - but with limited inventory.