Number of REO Sales Declining in Sacramento County Market

In May of 2008 the Sacramento Assn of Realtors started showing the number of bank owned home sales as a part of the total home sales for Sacramento County and the City of West Sacramento. The May, 2008 statistical report showed that there were 1084 (65.5%) REO out of the total of 1654 single family home sales. From May through August the REO sales were running about 66% to 69% of the total for any given month. Beginning in September of 2008 the REO sales for the first time topped 70% and stayed in the 70% plus category through December 2008.

The graph shows what is happening in 2009. In January the REO were 75.7% of the total closed sales. In February the REO closed sales were 74.3%, March 70.5% and they are declining as a percentage of the total each month through September when the REO sales are 45.4% of the total. Is this a trend that will continue? Some people are saying that the banks are withholding homes to avoid flooding the market . The monthly statistics tell the accurate story. Bank owned homes in our region are becoming a smaller part of the total market. Will this trend continue? Time will tell.

Beginning in June 2009 the Sacramento Board of Realtors starting publishing the number of short sale closings as a part of the whole. In June of 2009 short sales were 16.6% of the total closed sales. In September 2009 short sales were 19.3% of the total closings. Is this a trend?? Watching the numbers will provide the answers.

Using graphs is a very effective way to tell a story quickly, so we are now using them as a visual aid to show what is happening in our marketplace.

Richard Kitowski

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