Industry News
Mortgage Industry News
Bank Owned Inventory is running out!
04/10/2009
“It may only be a product of the many moratoriums on REO sales, that has dropped inventory levels down to just one month and below a month for pending sales which have jumped 24%,” said Michael Lyon, CEO of Lyon Real Estate. “The average REO sold price is hovering at $180,000 for the last three months. Even more profound is that the price per foot for REO’s in Sacramento County has dropped below $100/ft to $ 99/ft. Interest rates are below 5%, first time buyer tax credits and REO inventories that are being absorbed as fast as they reach the market are changing the market faster than anticipated. Let there be no misunderstanding about the REO market, we feel there will be as many REO sales this year as last. The difference is the drastic drop in prices and very low interest rates have made for an ideal buyers market. Jumbo mortgages above $700,000 which were very hard to come by are slowly becoming available as Lenders decide that they have enough money to lend. There is still no secondary market for these loans, so the Banks have to keep them on their books; but many banks feel a 6% to 7% asset on the books is not a bad investment.”
Sales increased 10 percent during the month of March for the Tri-County region of Sacramento, Placer and El Dorado Counties. March 2009 sales were 43 percent higher than March 2008 sales. Pending sales increased by 35 percent from February to March 2009. March 2009 inventory of 7,739 homes for sale is 37 percent lower than March 2008 inventory. This is a 49 percent decrease for the regional inventory record high of 15,302 set in August 2007.
COUNTY HIGHS AND LOWS
Sacramento County sales increased 7 percent from February to March 2009. Inventory decreased 7 percent during the month of March. Pending sales increased by 33 percent in the month of March. 61 percent of the homes sold for under $200,000; 34 percent of the homes sold for between $200,000 and $400,000; and 5 percent of the homes sold for over $400,000. The average price per square foot decreased by 2 percent during the month of March to $113.
Placer County sales increased by 32 percent and inventory decreased by 3 percent during the month of March 2009. Pending sales increased by 49 percent from February to March. 15 percent of the homes sold for under $200,000; 65 percent of the homes sold for between $200,000 and $400,000; and 20 percent of the homes sold for over $400,000. The average price per square foot decreased 1 percent during the month of March at $148.
El Dorado County showed a 7 percent increase in sales from February to March, and the inventory increased by 2 percent from February to March. Pending sales have increased 29 percent during the month of March. 17 percent of the homes sold for under $200,000; 49 percent of the homes sold for between $200,000 and $400,000; and 34 percent of the homes sold for over $400,000. The average price per square foot decreased by 1 percent during the month of March to $163.
Yolo County showed a 57 percent increase in sales for March and the inventory decreased by 10 percent. Pending sales increased 17 percent during the month of March. 42 percent of the homes sold for under $200,000; 42 percent of the homes sold for between $200,000 and $400,000; and 16 percent of the homes sold for over $400,000. The average price per square foot increased by 11 percent during the month of March to $142.
Nevada County sales have decreased by 34 percent during the month of March, and inventory increased 5 percent. Pending sales increased by 30 percent. 0 percent of the homes sold for under $200,000; 43 percent of the homes sold for between $200,000 and $400,000; and 57 percent of the homes sold for over $400,000. The average price per square foot increased by 2 percent during the month of March at $192.
San Joaquin County sales have increased by 19 percent during the month of March, and inventory decreased 16 percent from February to March. Pending sales are up 36 percent. 50 percent of the homes sold for under $200,000; 42 percent of the homes sold for between $200,000 and $400,000; and 8 percent of the homes sold for over $400,000. The average price per square foot decreased 5 percent to $91 in March.
