Sacramento Real Estate News
The monthly real estate report from Mike Lyon’s Trendgraphix report has some interesting data. Mike says it better than I can so here are a few selected quotes:
In a reaction to REO inventories now below one month’s supply, more buyers are turning to short-sales in hopes of snagging the home of their dreams. (emphasis added)
…the price-per-foot is on the rise in Sacramento, Placer and Yolo counties…
Even the Non-REO inventories have dropped down to a 4 months’ supply which is very different from last year at this time when we had 9 months supply of inventory.
We still anticipate large numbers of REO properties to enter the market in late spring but if they are spread out and absorbed quickly there is the real possibility that prices under $200,000have seen the bottom.
Sacramento is experiencing very high unemployment and the state of California’s financial woes do not bode well for the local economy. The price per square foot gains are only a couple of percentage points and that number is about 1/2 of where it was 4 years ago.
It appears a bottom is forming in the Sacramento real estate market driven by a shortage on the inventory side. I would not want to see homebuilders rush in and pump up inventory, but at the same time some renewed construction would be positive for the employment side.
I have theorized that when home prices started to uptick it would unleash a buying gold rush. It now seems the gold will be in short supply and the banks holding foreclosed properties may be able to hold out for better prices than the current going rate. It will be interesting to see what happens.
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