Significant Reduction in Housing Inventory in Sacramento County

By
Real Estate Agent with GreatWest Realty DRE# 00827565

If anything can demonstrate the difference a year can make in the Sacramento housing arena, it will be the numbers on the graph below.  The statistics compare June 2011 to June 2012 “For Sale – Sold – Pended” homes in all of Sacramento County.   Housing inventory for the comparison, recorded a decline of –63.1%, while homes enjoying “Pended” status increased +8%.

Interest rates continue to be at historic lows, but unlike June of 2011, available homes listed For Sale, are significantly reduced!

 

Sacramento Housing Statistics

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Rainmaker
1,483,150
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Authentic Feng Shui Expert

Numbers come and go but keep your heart and stay bessed, right? Good luck, Myrl! :)

Aug 01, 2012 08:58 PM #1
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Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Myrl, what is the reason for the drop in active listings? That is a huge drop. What is going on there?

Aug 01, 2012 09:16 PM #2
Rainmaker
1,139,217
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Laura - Thank you for your kind thoughts!  I hope you are having a wonderful week!

Andrea - For awhile now we have had a trend of more homes enjoying pending and sold status, with fewer coming on the market for sale.  In fact today, when I checked the MLS 24-Hour Watch.  We had double the number of homes that were Pended and Sold than were listed For Sale.  I have been cautious about reporting this because I had, and still do have concerns about any "shadow" inventory that banks may be holding.  However, the "shadow" spectre has been haunting us for awhile now.  Sometimes I wonder if it is an aparition that won't actually materialize.  Differing reports speak about banks holding onto homes as part of their own portfolios.  And others report that much of the bank inventory is being packaged up and sold to investors, and even foreign countries.  I hope we don't get into a situation, where we become a rental nation, rather than a home-owning country!

Aug 01, 2012 09:28 PM #3
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Praful Thakkar
Keller Williams Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Myrl, I guess that's the story in most good towns this summer. And surprisingly enough, the sellers are still not motivated to get a good price for their homes....(multiple offers are frequent here...)

Aug 01, 2012 11:36 PM #4
Rainmaker
1,139,217
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Praful - While witnessing past real estate cycles over the past 30 years in Sacramento, I have noted that reduced inventory is generally accompanied by rising home prices.  However, we still need folks to find jobs, and to feel more confident in general about the economy.  Still, someone is buying homes.  There seems to be a lot of cash floating around by investors.

Aug 02, 2012 05:20 AM #5
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Norma Toering
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes & Beach Cities Homes in L.A. CA

Myrl - Lack of inventory is the big housing story in Southern California too.  It's that old supply and demand thing--I agree prices will begin to inch up due to lack of supply and higher demand.

Aug 02, 2012 06:11 AM #6
Rainer
185,098
Irene Durocher
Coldwell Banker BUYERS AGENT - Boca Raton, FL
homesweethome4u@att.net

Hi Myrl, this is all great news for the real estate industry.

I wish you a great day in all you do.

Aug 02, 2012 06:12 AM #7
Rainmaker
602,720
Patricia Feager, MBA, GRI, Cert Negotiations Expert, Military Relo Prof
Keller Williams Realty - Flower Mound, TX
The Little REALTOR® That Could

Myrl,

I just love to hear good news from CA! California is trendy and people pay attention to what's going on over there.

I am delighted to see those stats and happy to know people are moving around California again. This is GREAT, GREAT NEWS!!! What a difference a year makes.

Thank you for all that you do to promote the great State of California. I think I hear people singing, "California, here I come, right back where I started from!"

Actually, I recently sold a home in Flower Mound to a family. He was transferred to CA so jobs are on the rise too!

Aug 02, 2012 10:51 AM #8
Rainmaker
1,347,289
Ron & Alexandra Seigel
ra@napaconsultants.com - Carpinteria, CA
Luxury Real Estate Marketing

Myrl,

What great news this is for your marketplace.  These are encouraging news for all of California, which means that the job rate must be on the rise.  Wishing you lots of sales! A

Aug 02, 2012 03:02 PM #9
Rainmaker
697,645
Kwee Huset
Kwee Huset Realty - Venice, FL
Venice Florida Homes For Sale

Hi Myrl, supply, demand and prices always work together. Inventory going down and the demand continue very soon the home prices will go up. Buyers call Myrl for help now before it is too late.

Aug 02, 2012 07:09 PM #10
Rainmaker
265,681
Jack Mossman - The Nines Team in Stockton
The Nines Team At Keller Williams - Stockton, CA
The Nines Team at Keller Williams

Myrl - You comment to Andrea touches on what may still be a dreadful issue in the coming (no crystal ball dates here) months ... and I'm afraid that it may even be in the next years.  We have run simple numbers on number of foreclosures taken back by the banks - versus ALL sold, listed and pendings in 90 day cycles.  It's only a trend and no concrete numbers, but it strongly indicates in our local areas that the "shadow" inventory is there.  I've done a few spot checks and there seems to be mostly occupied.  Tax records still show the owner as a financial institution .... again a strong suggestion that banks are building rental portfolios .... and perhaps not by choice ....

Aug 02, 2012 07:21 PM #11
Rainmaker
1,139,217
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Norma - I know that foreclosure is going on, but not all of it seems to be hitting the marketplace inventory.  You're right, supply and demand generally orchestrates the market. Interesting times!

Patricia - Our jobs market seems to be headed in the right direction, but at a snail's pace.  I will be really anxious for the election to be over.  I think business and a lot is hinged on getting that behind us.

Alexandra - Two people I know have found jobs in the last couple weeks.  They had been without work for a few months.  So yes, this is a good sign!




Aug 02, 2012 07:35 PM #12
Rainmaker
1,139,217
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Kwee - While I am anxious to see some restoration of home values, I hope it doesn't occur so rapidly as to leave some folks totally locked out! 

Jack - I can imagine Stockton, which was hit hard by the housing crisis would have an up close and personal view of what is going on with foreclosures.  Isn't it amazing that the banks got the bailouts, and now get to build portfolios in the process:-(

Aug 02, 2012 07:38 PM #13
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William Johnson
RE/MAX Associates - San Diego, CA
San Diego Real Estate Voice, GRI CRS e-Pro CDPE
Hi Myrl, Maybe the hesitation of many sellers to hold back is actually heating up the market some. I see slight increases in values and multiple offers which tells me the demand is starting to increase and creating a need to take action. This looks like the early beginnings of a more balanced market that hopefully can be sustained long enough to benefit some of the underwater properties.
Aug 02, 2012 08:45 PM #14
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Karen Kruschka
RE/MAX Real Estate Connections - Manassas, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Myrl  I believe the low inventory is the fact sale prices have not recovered to a point that sellers will not have to write a checj at settlement.  I've seen this condition too many times in the last 36 years

Aug 03, 2012 11:57 AM #15
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Barbara-Jo Roberts Berberi & Corinna Birgit Cromartie
Charles Rutenberg Realty - Palm Harbor, FL
Palm Harbor & Dunedin FL Residential Real Estate

Our housing inventory is REALLY low as well and buyers are NOT happy campers!

Aug 03, 2012 01:24 PM #16
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John McCormack
Albuquerque Homes Realty * www.AlbuquerqueHomes.com - Albuquerque, NM
AlbuquerqueHomes.com

Wow... That's a huge drop!  We're leveling off to a more normal whatever normal is suppose to be. 

Aug 03, 2012 05:20 PM #17
Rainmaker
1,417,593
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

 Myrl, what great news your market has really changed, and nice to see strong activity once again!

Aug 03, 2012 06:07 PM #18
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Silvia Dukes PA, REALTOR
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living
Myrl, good news for sellers in the Sacramento market! We do hear similar news from all corners of the country, it's a good thing!
Aug 03, 2012 06:39 PM #19
Rainmaker
1,212,153
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

Pull up the numbers for 5 years ago, Myrl. You will see in August of 2007 we had more than 10,500 homes for sale in Sacramento!! How do you like those apples?

Aug 06, 2012 08:10 AM #20
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Rainmaker
1,139,217

Myrl Jeffcoat

Greater Sacramento Real Estate Agent
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