Industry News
Mortgage Industry News
SHORT-SALES FUEL DROP IN INVENTORY AND PRICES FOR UPPER-END
11/12/2009
Pended short-sales are up 94% for the last 12 months for homes priced above $400,000.00. “We have already seen a 20% discount in pricing in the upper-end REO market,” says Michael Lyon, CEO Lyon Real Estate. “With the dramatic increase in pended short-sales that are equally discounted, it will naturally drive non-distressed, upper-end prices down as well.” Moving forward, it is very likely that we will see more short-sales than REO’s in the upper-end because banks know it is much harder and takes longer to sell and maintain expensive REO properties. As opposed to upper-end inventory, homes priced below $400,000.00 are experiencing price increases as current inventory has leveled out at only 2 months supply.
TRENDGRAPHIX’s latest report shows that sales increased 1 percent during the month of October for the Tri-County region of Sacramento, Placer and El Dorado Counties. October 2009 sales were 17 percent lower than October 2008 sales. Pending sales increased by 4 percent from September to October 2009.
October 2009 inventory of 5,718 homes for sale is 52 percent lower than October 2008 inventory. This is a 63 percent decrease for the regional inventory record high of 15,302 set in August 2007.
COUNTY HIGHS AND LOWS
Sacramento County sales remained the same from September to October 2009. Inventory increased 2 percent during the month of October. Pending sales increased by 5 percent in the month of October. 54 percent of the homes sold for under $200,000; 40 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 October to $124.
Placer County sales increased by 4 percent and inventory decreased by 6 percent during the month of October 2009. Pending sales increased by 9 percent from September to October. 11 percent of the homes sold for under $200,000; 67 percent of the homes sold for between $200,000 and $400,000; and 22 percent of the homes sold for over $400,000. The average price per square foot decreased 1 percent during the month of October at $148.
El Dorado County showed an 8 percent increase in sales from September to October, and the inventory decreased by 4 percent from September to October. Pending sales have decreased 8 percent during the month of October. 24 percent of the homes sold for under $200,000; 48 percent of the homes sold for between $200,000 and $400,000; and 28 percent of the homes sold for over $400,000. The average price per square foot remained the same during the month of October at $147.
Yolo County sales decreased by 18 percent for October 2009 and the inventory decreased by 6 percent. Pending sales increased 15 percent during the month of October. 34 percent of the homes sold for under $200,000; 50 percent of the homes sold for between $200,000 and $400,000; and 16 percent of the homes sold for over $400,000. The average price per square foot increased by 7 percent during the month of October to $160.
Nevada County sales have increased by 25 percent during the month of October, and inventory decreased 8 percent. Pending sales decreased by 19 percent. No homes were sold for under $200,000; 47 percent of the homes sold for between $200,000 and $400,000; and 53 percent of the homes sold for over $400,000. The average price per square foot decreased by 3 percent during the month of October to $180.
San Joaquin County sales have decreased by 12 percent during the month of October, and inventory decreased 2 percent from September to October. Pending sales increased 10 percent. 42 percent of the homes sold for under $200,000; 45 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 increased 4 percent during the month of October at $100.
