Sacramento home sales number for June
The headline in the Sac Bee article linked above highlights the fact that the Sacramento region for the first time in 14 months did not have year-over-year sales gains. This is primarily because the supply of repo homes has fallen to the point that willing buyers cannot find a home to buy. The listed home inventory has fallen by 43% over the last 12 months. However, it was the highest monthly sales for 2009 so far.
The median price remained stable in June and TrendGraphix reported the median per square foot increase by 1% to 3% in the area counties. With a decreasing inventory of foreclosure homes, buyers are looking to short sales the get the prices they want. In June, 16.6% of sale were of the short variety. Bankers have been making the short sale process smoother with lender response times cut in half.
The Sacramento are home market is a little bi-polar right now. The employment picture is grim with the State of California putting employees on furlough 3 days a month and the unemployment rate increasing. On the other side there are currently more buyers than inventory for the repo properties that are available. Buyers are sensing that if they do not get a home soon they will be missing out on the pricing bottom.
The last housing meltdown in the Sacramento area happened in the early 1990’s when the government shut down 3 large military installations in the city. Prices were stagnant for several years they started a serious runup up from the later 90’s until 2006. Buying a home now will look pretty good 5 to 10 years in the future.
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