20% of Existing Homes for Sale in Sacramento are Short Sales

USA Today has an interesting article about the Sacramento real estate market. According to the report....

• 1 in 5 homes listed for sale is a short-sale that translates to 20% of all listing in the area.

If you remember in 2005 Sacramento was one of the fastest appreciating areas in all of California... quite different now, according to the NAR the median price home fell 4.3% from last December.

These number of short sales make competition for the buyers even more difficult as home sellers are now competing with these "must sell" listings.

There is current a 4.3 month inventory of listings which does not include the 3.5 months of new construction. Additionally, there is a big pipeline of homes in the foreclosure process which will hit the market within the next 3-6 months further depressing values.

As I have mentioned in the past, real estate short sale will continue to represent a significant part of the market.

View USA Today Article