Low Inventory Leaves More Buyers Than Property

For July, sales decreased 8.9% from 1,734 units sold in June to the current 1,579 units sold this month. Year-to-year, closed escrows were up 15.8% from the 1,363 units sold last July. Making up the closed escrows this month were 591 REOs (37.4%), 358 short sales (22.7%) and 630 conventional sales (39.9%). These numbers have changed month to month with REOs down 11.7%, short sales staying relatively level (-.4%) and conventional sales up 14.6%.

The median home sales price remained low, but increased .7% to $166,000 from the $164,900 median sales price of last month. Compared with July 2010 ($185,000), the median sales price is down 10.3%. The $200,000 – $249,999 price range mode still accounts for a majority (14.6% or 230 units) of the 1,579 total sales this month, while homes under $100,000 totaled 279 (17.6%) units. Closed escrows from conventional financing (35.5%) increased, while cash buyers (27.8%) and FHA financing (27.9%) both decreased for the month. These numbers include the 130 condo sales this month. The average amount of days spent on the market (from list date to opening escrow) was 64 days – up from the 60 average DOM of June.

The Total Listing Inventory has been split up to more accurately display the current market. Active Listings numbered 3,747 properties and Active Short Sales Contingent showed 1,488. Active Short Sale Contingent properties are short sale properties on which initial offers have been made and are not entirely “active.” After breaking down Total Listing Inventory, we find that the Housing Market Supply figure is more accurately reflected. The Housing Market Supply figure for Month was 2.4 Months – the same as last month. This figure represents the amount of time – in months – it would take to deplete the Active Listing Inventory (3,747) given the current number of closed escrows (1,579). 2011 SAR President Doug Covill stated “We would have more sales if there was more inventory. With all the competition, many buyers have to write multiple offers before getting a home. There are more buyers than property right now.”

According to MetroList® MLS data, the average home was 1,719 square feet. Of the 1,579 sales this month, 167 (10.5%) had 2 bedrooms or fewer, 854 (54%) had 3 bedrooms, 457 (28.9%) were 4 bedroom properties and 101 properties (6.4%) had 5+ bedrooms.

Condominium Resale Market
Sacramento condominium sales decreased for the month to 130 units. This figure is down 18.2% from the 159 units sold in June and up 6.6% from the 122 units sold last year. REO property sales accounted for 58.5% of all units sold while short sales (17.7%) and conventional sales (23.8%) accounted for the remainder. REO condo sales increased 17.7%, short sales increased 17.2% and conventional sales decreased 32.3%. The condominium median sales price decreased 6.6% month-to-month, from $85,000 to $79,350. This current price is down 9.1% from the $87,250 median sales price of July 2010. The total listing inventory decreased only .6% month-to-month. Of the 561 listings, 194 (34.5%) were listed as Active Short Sale Contingent, leaving the actual Active Listing Inventory at 367 units.