Sacramento Short Sale Market Watch - March 2011
Here is our Sacramento Short Sale Market report for the Month of February 2011. Please keep in mind this data was drawn for properties under the $400,000 price range within Sacramento County. Short Sales in Sacramento have increased steadily since 2009 and will continue to do so. Pending sales are skyrocketing. This is due to two factors, one the time it takes to get a short sale closed once the banks approval has been received is much longer than a traditional sale. There many factors that can cause delays such as not making the original approval date on the short sale approval, and having to get a revised approval letter. The second factor is, many Sacramento Short Sale Agents simply put, don't know what they are doing and erroneously change the status in the MLS to pending when the offer has been accepted by the seller and it has been submitted to the lender. The proper way to report this in MLS is Short Sale Contingent. It is just that, contingent on the lender approval. Once the approval is received at that point it may go into pending status. Believe it or not, some agents don't know this, or don't care I am not sure which.
Every closed Sacramento Short Sale property means one less foreclosure, and this is good for the market as a whole. The banks are finally coming to realization that getting out of a bad loan sooner than later, and not getting into the business of home ownership is a good thing. For instance, currently there are over 2000 homes for sale as a Short Sale in Sacramento. Compared to 1200 as a foreclosure. It was not long ago those numbers would have been reversed.
Here are some facts and data to chew on...
Total Short Sale Listings in Sacramento - 2085
New Sacramento Short Sale Listings in February - 731
Sacramento Short Sale Listings Sold - 238
Pending Sacramento Short Sale Listings - 1068
This is compared to the following data for Foreclosure Property...
Total Foreclosure Listings - 1215
New Foreclosure Listings - 649
Foreclosure Listings Sold - 563
Pending Foreclosure Listings - 727
For all properties combined pending sales have continued to climb for the past three months and we currently have over 4 months of inventory on the market. This is nearly double of what we had on the market a year ago. The average price per square foot has dropped from 115 to 104 from a year ago, that is a 9% decrease. I expect that as time goes on and foreclosure properties decrease and short sales increase these numbers will improve slightly. But true recovery will not happen for quite sometime.
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