Most agents I talk with recently have been complaining about how the Sacramento and Roseville area housing market appears to slumping but according to a recent report from the California Association of Realtors (CAR), pending sales increased 17.8 percent in March and is the highest since July of last year.
Pending home sales are based on signed contracts and are a forward looking indicator of future home sales.
The National Association of Realtors also reported pending home sales increased across the country by 3.4 percent and is the first gain in the past nine months. The report goes on to predict increased homes sales are expected as we see more inventory of available houses and jobs.
Although home sales are expected to trend up over the balance of the year and into 2015 the slow start most likely means sale levels on a national basis will not exceed the 2013 volume.
Another positive sign is the share of equity sales, or non-distressed property sales, which has been increasing steadily over the past year. The share of equity sales increased to 87.6 percent in March, up from 85 percent in February. Equity sales stabilized over the past several months but have started rising again as the spring home-buying season takes off. March marks the ninth straight month that equity sales have been more than 80 percent of total sales. Equity sales made up 71.8 percent of sales in March 2013.
In Sacramento and Placer counties we are seeing similar trends. The percentage of distressed property sales have declined significantly from last year. In Sacramento only 17 percent of March sales were distressed properties compared to 37 percent in March 2013. For Placer County the drop from last year to this year was 35 to 11 percent.
Now we just need more houses to come on the market and jobs!
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