Industry News
Mortgage Industry News
Bank-Owned Inventories on the Rise
01/26/2010
After a full year of numerous government moratoriums on foreclosures, we ended 2009 seeing a 22% increase in the number of foreclosed homes entering the market in December; and we expect at least a 15% increase in foreclosed homes on the market in 2010.
The average sold price of foreclosed homes has risen from $198,000 to $206,000 and prices for homes under $300,000 continue to appreciate at rates seen before the 2005 real estate market crash. “We do not see this slowing in the near future until interest rates rise by midyear”, said Michael Lyon, CEO of Lyon Real Estate. “This is largely due to both strong demand by investors and first-time home buyers taking advantage of federal tax credits.”
That being said, homes priced above $300,000 in Sacramento County and above $400,000 in Placer, El Dorado and Yolo counties remain soft and many homes away from job markets risk continued depreciation.
TRENDGRAPHIX’s latest report shows that sales decreased 1 percent during the month of December for the Tri-County region of Sacramento, Placer and El Dorado Counties. December 2009 sales were 22 percent lower than December 2008 sales. Pending sales increased by 15 percent from November to December 2009.
December 2009 inventory of 5,758 homes for sale is 46 percent lower than December 2008 inventory. This is a 62 percent decrease for the regional inventory record high of 15,302 set in August 2007.
COUNTY HIGHS AND LOWS
Sacramento County sales increased 1 percent from November to December 2009. Inventory increased 4 percent during the month of December. Pending sales increased by 13 percent in the month of December. 54 percent of the homes sold for under $200,000; 39 percent of the homes sold for between $200,000 and $400,000; and 7 percent of the homes sold for over $400,000. The average price per square foot decreased by 1 percent during the month of December to $124.
Placer County sales decreased by 7 percent and inventory decreased by 6 percent during the month of December 2009. Pending sales increased by 26 percent from November to December. 5 percent of the homes sold for under $200,000; 48 percent of the homes sold for between $200,000 and $400,000; and 47 percent of the homes sold for over $400,000. The average price per square foot decreased 5 percent during the month of December to $145.
El Dorado County showed a 9 percent decrease in sales from November to December, and the inventory decreased by 11 percent from November to December. Pending sales have increased 27 percent during the month of December. 20 percent of the homes sold for under $200,000; 47 percent of the homes sold for between $200,000 and $400,000; and 33 percent of the homes sold for over $400,000. The average price per square foot decreased 1 percent during the month of December to $151.
Yolo County sales decreased by 7 percent for December 2009 and the inventory decreased by 6 percent. Pending sales decreased 4 percent during the month of December. 34 percent of the homes sold for under $200,000; 49 percent of the homes sold for between $200,000 and $400,000; and 17 percent of the homes sold for over $400,000. The average price per square foot decreased 2 percent during the month of December to $150.
Nevada County sales have increased by 5 percent during the month of December, and inventory decreased 8 percent. Pending sales decreased by 64 percent. 2 percent of the homes sold for under $200,000; 42 percent of the homes sold for between $200,000 and $400,000; and 56 percent of the homes sold for over $400,000. The average price per square foot decreased by 2 percent during the month of December to $188.
San Joaquin County sales have decreased by 2 percent during the month of December, and inventory increased 8 percent from November to December. Pending sales increased 19 percent. 39 percent of the homes sold for under $200,000; 47 percent of the homes sold for between $200,000 and $400,000; and 14 percent of the homes sold for over $400,000. The average price per square foot increased 2 percent during the month of December to $101.
