Evolution of Cash vs. Conventional vs. FHA in the Sacramento Real Estate Market

Just thought i'd post a quick blog today about the evolution of what types of buyers have been in the market over the past 5 years.  Let's take a quick look to see what happened, where we are at today and potentially what is to come in the near future.

Here's the percentages of sales according to the type of buyer.

As you can see from the chart, Cash sales were at a high in 2012-2013.  While FHA buyers were struggling at that time to get accepted offers and hit a low in 2013.  Since then, the cash buyers have slowed down a bit and that has allowed more opportunity for the FHA buyers to purchase more homes as well as more Conventional loan products have become available in the past three years.  SO you can see how more conventional sales are going through as well.

That's a MACRO look at the Sacramento REal Estate market, as a whole.  Lets now take a MICRO look at an individual neighborhood.  Let's look at my great neighborhood of College-Glen, near the American river and Watt ave.

As you can see, there are a few similarities but not much of a mirror image there.  This shows the difference in analyzing the market from a large scale and then from a small neighborhood perspective.  Looking at the county as a whole can give you a broad perspective but it really might not be exactly what is going on in your specific neighborhood.

Bottom line, most neighborhoods in the Sacramento Area are seeing more Conventional and FHA buyers purchasing homes than Cash buyers.  The biggest reason is that since home prices have increased over the past three years, the properties are no longer as good of deals for cash investors any more.

For More information: www.CollegeGlenRealEstate.com 

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clear skies,

Doug Reynolds

Realtor

916-494-8441

         

www.RealEstateWithDoug.com

www.CollegeGlenRealEstate.com

The Sacramento Real Estate market continues to slowly shift...

...in favor of buyers.  I've been talking and writing about the shift that is going on since June.  The latest stats for Sacramento Real Estate just came out  and you guessed it, the shift is starting to show up in the numbers.

• The inventory of available homes for sale has gone up the last two months and we are now at 1.3 months of inventory.  That's still an extremely low amount but it's 54% higher than the beginning of this year

• The amount of cash buyers/investors is definitely decreasing at a very quick rate.  Check out this postand graph below from Ryan Lundquist's blog: http://sacramentoappraisalblog.com/

Inventory has increased over the past several months and there has been less investors playing the market. Despite an uptick in sales in Q2 of 2013, for example, investors played a lesser percentage role in overall sales. For reference, there were 3831 sales in Sacramento County in Q1 2013 and 4748 sales in Q2 of 2013.

What does this all mean???  

• Seller's: Need to realize the crazy sellers market has gone away.  Sellers still have the upper hand due to low inventory but they need to really price the home Right from day one or they may be sitting on the market for a while.
• Buyers: Things are getting better for you.  There's a little less competition and a little more homes to choose from.  Don't get wrong, there's still going to be multiple offers on homes that are priced right and show well BUT you are in a better position now than at the beginning of the year.  Inventory should be slowly going up as we head into the winter

clear skies,
Doug Reynolds
Realtor
916-494-8441
 
www.SellWithDoug.com
www.BHGshortsales.com