Industry News
Mortgage Industry News
REO Market Steps Down as Sales Leader
12/12/2009
A shift in the market has occurred in the Sacramento region, putting traditional sales (non-distressed properties) in the lead for units sold over REO and short-sale properties. Out of the 1,995 total sales in the 4 county region in November, traditional sales accounted for 843 of them; equaling 42%. REO units sold totaled 745 units, representing 37%, and short-sale units equaled 412, or 21%.
This change has occurred due to marked appreciation in both REO and short-sales under $300,000 in the last 8 months; and traditional properties for sale continuing to drop in value.
“REO home sale prices have experienced a 10% appreciation for homes under 300,000 since the bottom of the market in April; based on average values of $97/ft in April to November’s price of $107/ft.,” stated Michael Lyon, CEO, Lyon Real Estate. “These are dazzling statistics by any measure. Despite the slowing pace of REO sales, the new bargains are the homes not in trouble but discounted to sell and compete directly with REO and short-sales. For example, short-sale prices have risen 4% since May, while traditional sales have dropped 4% since April of this year.”
TRENDGRAPHIX’s latest report shows that sales decreased 23 percent during the month of November for the Tri-County region of Sacramento, Placer and El Dorado Counties. November 2009 sales were 15 percent lower than November 2008 sales. Pending sales increased by 3 percent from October to November 2009.
November 2009 inventory of 5,718 homes for sale is 49 percent lower than November 2008 inventory. This is a 62 percent decrease for the regional inventory record high of 15,302 set in August 2007.
COUNTY HIGHS AND LOWS
Sacramento County sales decreased 23 percent from October to November 2009. Inventory decreased 2 percent during the month of November. Pending sales increased by 4 percent in the month of November. 55 percent of the homes sold for under $200,000; 39 percent of the homes sold for between $200,000 and $400,000; and 6 percent of the homes sold for over $400,000. The average price per square foot increased by 2 percent during the month of November to $126.
Placer County sales decreased by 24 percent and inventory decreased by 5 percent during the month of November 2009. Pending sales decreased by 8 percent from October to November. 4 percent of the homes sold for under $200,000; 41 percent of the homes sold for between $200,000 and $400,000; and 55 percent of the homes sold for over $400,000. The average price per square foot increased 4 percent during the month of November at $153.
El Dorado County showed a 24 percent decrease in sales from October to November, and the inventory decreased by 6 percent from October to November. Pending sales have increased 3 percent during the month of November. 21 percent of the homes sold for under $200,000; 47 percent of the homes sold for between $200,000 and $400,000; and 32 percent of the homes sold for over $400,000. The average price per square foot increased 3 percent during the month of November at $152.
Yolo County sales decreased by 2 percent for November 2009 and the inventory decreased by 5 percent. Pending sales increased 5 percent during the month of November. 27 percent of the homes sold for under $200,000; 53 percent of the homes sold for between $200,000 and $400,000; and 20 percent of the homes sold for over $400,000. The average price per square foot remained the same during the month of November to $156.
Nevada County sales have decreased by 21 percent during the month of November, and inventory decreased 11 percent. Pending sales increased by 42 percent. 3 percent of the homes sold for under $200,000; 46 percent of the homes sold for between $200,000 and $400,000; and 51 percent of the homes sold for over $400,000. The average price per square foot increased by 5 percent during the month of November to $191.
San Joaquin County sales have decreased by 16 percent during the month of November, and inventory increased 1 percent from October to November. Pending sales decreased 1 percent. 41 percent of the homes sold for under $200,000; 46 percent of the homes sold for between $200,000 and $400,000; and 13 percent of the homes sold for over $400,000. The average price per square foot decreased 1 percent during the month of November at $99.
