Industry News
Mortgage Industry News
Short Sales on the Increase
05/11/2009
“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. Relatively, the price-per-foot is on the rise in Sacramento, Placer and Yolo counties, although we are still seeing declines in price-per-foot for El Dorado and Nevada counties. The 8% jump in Pended sales over last month reflects strong buyer demand however, with short-sales having only a 25% successful closing rate, we may not see the same result in future closed transactions. 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 $200,000 have seen the bottom.”
Sales decreased 7 percent during the month of April for the Tri-County region of Sacramento, Placer and El Dorado Counties. April 2009 sales were 3 percent higher than April 2008 sales. Pending sales increased by 7 percent from March to April 2009.
April 2009 inventory of 6,821 homes for sale is 42 percent lower than April 2008 inventory. This is a 55 percent decrease for the regional inventory record high of 15,302 set in August 2007.
COUNTY HIGHS AND LOWS
Sacramento County sales decreased 7 percent from March to April 2009. Inventory decreased 17 percent during the month of April. Pending sales increased by 5 percent in the month of April. 62 percent of the homes sold for under $200,000; 32 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 April to $115.
Placer County sales decreased by 8 percent and inventory decreased by 5 percent during the month of April 2009. Pending sales increased by 6 percent from March to April. 11 percent of the homes sold for under $200,000; 66 percent of the homes sold for between $200,000 and $400,000; and 23 percent of the homes sold for over $400,000. The average price per square foot increased 1 percent during the month of April at $150.
El Dorado County showed a 5 percent decrease in sales from March to April, and the inventory decreased by 1 percent from March to April. Pending sales have increased 31 percent during the month of April. 22 percent of the homes sold for under $200,000; 46 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 decreased by 8 percent during the month of April to $150.
Yolo County showed a 16 percent decrease in sales for April and the inventory decreased by 9 percent. Pending sales increased 18 percent during the month of April. 39 percent of the homes sold for under $200,000; 44 percent of the homes sold for between $200,000 and $400,000; and 17 percent of the homes sold for over $400,000. The average price per square foot increased by 9 percent during the month of April to $153.
Nevada County sales have increased by 67 percent during the month of April, and inventory increased 5 percent. Pending sales increased by 16 percent. 5 percent of the homes sold for under $200,000; 30 percent of the homes sold for between $200,000 and $400,000; and 65 percent of the homes sold for over $400,000. The average price per square foot decreased by 2 percent during the month of April at $185.
San Joaquin County sales have increased by 1 percent during the month of April, and inventory decreased 23 percent from March to April. Pending sales are down 2 percent. 51 percent of the homes sold for under $200,000; 40 percent of the homes sold for between $200,000 and $400,000; and 9 percent of the homes sold for over $400,000. The average price per square foot remained the same at $91 in April.
