Below is a Trendgraphix chart detailing the last 15 months of housing activity in Sacramento County. From September of 2007 through November of 2008, inventory has fallen 39% in Sacramento. Inventory is the number of homes for sale. With fewer homes for sale, buyers have fewer choices, which means the homes that are attractively priced and located in desirable neighborhoods are receiving multiple offers.
This is in contrast with most buyer's markets. Generally, in a buyer's market, inventory rises, but we are witnessing a reversal in Sacramento. The best looking homes sell the fastest. Of course, there are still neighborhoods where almost every listing is a short sale or a foreclosure and little demand for those areas.
However, in Midtown Sacramento, Land Park, Curtis Park and East Sacramento -- the core neighborhoods close to downtown -- homes priced for first-time home buyers are selling at a brisk pace. Contractors are falling all over themselves to snatch up the fixer-upper homes as well. I probably receive at least one call a week from a contractor searching for that next flipper house.
Sellers are not putting their homes on the market unless they are willing to price them competitively among the short sales and foreclosures. This is good news for buyers: appropriately priced homes plus low interest rates; it's a great time to buy a home in Sacramento!
You will also note the red line, which is the pending sales. It is normal for pending sales (and closed sales) to dip in November. I would not be surprised to see a further dip in pending and sold numbers for December. However, I predict sales will shoot right back up in January. The New Year, if it follows the past several January's, is likely to be strong.
The number of pending sales fell 9% in November over October. However, the long-term trend from September of 2007 through November of 2008 shows pending sales have almost tripled. During that same time period, closed sales have jumped about 225%. This means buyers are actively chasing this astounding market and picking up fabulous deals.
Much of that activity is fueled by foreclosures. I will show you the foreclosure chart tomorrow.
If you're thinking about selling your home as a short sale or you are a first-time home buyer who wants to take advantage of today's Sacramento real estate market, feel free to call me at 916.233.6759. I always answer my cell.
The Short Sale, by Elizabeth Weintraub, coming from Archer Ellison in January 2009.
Image: Trendgraphix
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Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.
