The inventory of homes for sale is the lowest since late 2005, dropping 44% in the last year. New listings coming on the market over the last three months have declined to early 2005 levels. At no time in the past 7 years have there been fewer homes available to buy in the Sacramento area.
Pending sales have jumped 45%, stabilizing prices. The average sold price per square foot for homes has declined only 3.6% since February 2011.
This respite may be short lived though. The supply of homes for sale is expected to increase this year with the California Attorney General settling with the major banks over foreclosure improprieties. With the settlement in place lenders are expected to pick up the pace of foreclosure activity. This could mean more homes for sale.
In the meantime quality homes to buy can be scarce. In some communities like Folsom the supply of homes is the lowest it has been in over 10 years.
“The current market environment provides a unique window of opportunity for sellers” says Jeff Werolin, Vice President for Morris Williams Realty. “With the very real risk of increased inventory of homes coming on the market this spring and summer sellers today can enjoy a market with many buyers unable to find a home. Combined with record low interest rates this makes multiple offers for sellers a common occurrence. This could be the best time this year to market and sell your home.”
In January the inventory of homes for sale was 45% Traditional, 37% Short Sale and 18% REO. Homes sold were 34% Traditional, 33% Short Sale and 33% REO.
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Morris Williams Realty is a full service Real Estate Brokerage operating in California, Florida and Texas. Jeff Werolin is the Vice President and Managing Director for Morris Williams in California and a former Manager and Training Director for Lyon Real Estate. For more information contact Mr. Werolin at 916-741-9505 or Jeff@MorrisWilliamsRealty.com.
