Sacramento Real Estate Views

Buyers On The Sidelines…Again

Number of Single Family Homes for Sale Continues to Rise

With the threat of a double dip housing recession and no incentive for first time home buyers to purchase, the Sacramento real estate market is losing, or has lost, steam.

I know it sounds like a broken record but every month this year the number of homes for sale has gone up.

The threat of a double dip housing recession in the Sacramento region with the typical slowdown point of the “buying season” approaching is very daunting.

Depending on what the banks do, there could be more and more homes coming on the market without buyers to purchase them as investors wisely wait for the fallout yet again.

Where does our market go from here?  From the looks of it right now, not in the preferred direction.

Simple economics dictate that when supply goes up, values go down.  As you can see from the graph, supply is going up and has gone up every month this year.

Status Of Homes For Sale Remains Consistent

The status’ of the homes on the market has remained consistent since the beginning of the year, percentage wise. Looking at the fact that the notices of default keep on coming, albeit at 47% less than last year, it seems as if the foreclosures inventories should be increasing but they aren’t.

The reason for this is that many homeowners are working with their lenders to get loan modifications and some are going the short sale route.

Still, foreclosure sale after foreclosure sale is being postponed. In fact, 29% more postponements than the same time last year and 16% more postponements than last month.

I’ve heard that recovery really isn’t in the cards for our region economically until 2014.

I hope that’s wrong.  What we need right now is a huge bright spot something to get a smile on the face of the region.  A few more jobs would help.

I’m smiling anyway..regardless of what’s going on.

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Tags: homes for sale rocklin, Lincoln, Roseville, sacramento

This entry was posted on Wednesday, September 1st, 2010 at 4:48 pm and is filed under Real Estate Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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