County report.14.4.sac

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County report.14.4.sac

  1. 1. April, 2014 www.WrightRealEstate.us Page 1 (916) 726-8308 County Report SACRAMENTO COUNTY Statistics and Perspectives of Sacramento County’s Residential Real Estate Market, including Investment Overview, Active, Pending, & Sold Trends. April, 2014 MMAARRKKEETT RREEPPOORRTT
  2. 2. www.WrightRealEstate.us County Report SACRAMENTO COUNTY MARKET SUMMARY: Sacramento County numbers have fluctuated heavily over 2013 we saw price gains extended price flattening, increasing inventory for sale same time as distressed inventory declined and was bought up. Th of activity invited an increase in conventional inventory. Seller confidence is relatively higher than it had been the couple years previous. Though it is typical for sales to slow slow end of 2013 and beginning of 2014 gear, and remains slow Not what people expect from a “robustly recovering” economy. Stepping into Q2 2014, by low numbers of purchases, interest rates. Investment Evaluation Of the 2,370 single family homes (SFR) sale (on April 11, 2014 of which 9% show monthly investments. An estimated internal rate of return (IRR) benefits are factored in (The “Assumptions” at the end of the report the properties as a group.) Page 2 SACRAMENTO COUNTY MARKET REPORT numbers have the last year. In we saw price gains followed by extended price flattening, a steadily for sale at the as distressed inventory bought up. This flurry increase in conventional inventory. Seller relatively higher than it had been the couple years previous. Though it is typical for sales to slow during the winter months, t end of 2013 and beginning of 2014 has not yet shifted into high , and remains slow in March 2014 when it would normally take off ot what people expect from a “robustly recovering” economy. Stepping into Q2 2014, Sacramento’s real estate optimism is tempered low numbers of purchases, flattening prices, and bolstered by low Evaluation: single family homes (SFR) available on the market , 2014) we were able to analyze approximately 97% monthly positive cash flow when evaluated An estimated 38% of these properties have a positive internal rate of return (IRR); which is a positive annual return after tax ed in. ” at the end of the report explain the numbers used April, 2014 (916) 726-8308 during the winter months, the into high ould normally take off. ot what people expect from a “robustly recovering” economy. Sacramento’s real estate optimism is tempered , and bolstered by low on the market for to analyze approximately 97%, positive cash flow when evaluated as positive annual return after tax explain the numbers used to analyze
  3. 3. www.WrightRealEstate.us County Report Of Multi-Family (2-20) unit properties and 161 were analyzed. positive monthly cash flow estimated return when tax benefits are Active Properties For Sacramento County, Active Listing Inventory as of 2,226 listings for the month, up current inventory is up Year The months of inventory available for sale months. That figure is up .8 months of inventory. amount of inventory divided by the number of months that it would take to sell the entire inventory. Pending Sales Pending sales at the beginning of April totalled 1,922. That is a increase over the previous month, and a 10.2% decrease from last year. Page 3 20) unit properties, there are 162 available for sale, nalyzed. 21% of these are estimated to produce monthly cash flows, while 87% show a positive annual estimated return when tax benefits are factored in (IRR). For Sacramento County, Active Listing Inventory as of April 1 rose to listings for the month, up .6% from March’s listings. The current inventory is up Year-to-Year, 87.1% from April 1, 2013 The months of inventory available for sale ticked downward to 1.8 figure is up dramatically from March 2013’s number of months of inventory. The term months of inventory expresses the amount of inventory divided by the number of sales, giving the number of months that it would take to sell the entire inventory. at the beginning of April . That is a 13.3% previous month, and from the same time April, 2014 (916) 726-8308 available for sale, of these are estimated to produce positive annual 1 rose to listings. The 2013. to 1.8 number of The term months of inventory expresses the , giving the
  4. 4. April, 2014 www.WrightRealEstate.us Page 4 (916) 726-8308 County Report Sold Properties Total properties sold during the month of March rose to 1,205, up 28.1% from February’s 941. However, the number of sales is down 15.4% from March 2013’s 1,424 units. Sales for March were made up of 95 REO’s (8% of sales), 104 short sales (9% of sales) and 1,006 conventional sales (83% of sales). One year ago REO’s accounted for 29% of sold homes, short sales 29% and conventional sales 42% of all sales. Price Change March’s average sales price is up to $289,285. That is a 1.4% increase over the previous month’s average of $285,338, and a 16.9% raise from March 2013. Average list price of properties that sold in March, 2014 was $296,873 and average Sold Price was $289,285, making an average price drop of $7,588 from listing to sale. Days on Market The average number of days a property was actively marketed before an acceptable offer was received was 39 Days on Market (DOM) in March. That is 1.7% fewer days than the previous month and 39.8% days fewer than March last year. The average days in March from the acceptance of an offer to close of escrow and sale was 37 days; one day less than the previous month and substantially less than the 51 days in March 2013.
  5. 5. April, 2014 www.WrightRealEstate.us Page 5 (916) 726-8308 County Report Investment Analysis Assumptions • 97% of SFR properties on the market were analyzed. • 99% of multifamily properties on the market were analyzed. • Down Payment at 25% • Interest Rate – 5% • Gross Expenses – 20% o Property Management – 10% o Vacancy – 5% o Maintenance – 5% • Taxes Estimated at 1.25% of purchase price • Insurance Estimated at .4% of purchase price • HOA are included in analysis • Where rents are not stated they are estimated, based on average area estimates for square footage and by number of bedrooms • 2-4 unit rents are estimated to be consistent with other rents in the same property • Tax Rate is estimated at 30% For information regarding Assessment of a Residential Investment Property, Market Analysis and/or Real Estate Sales contact us directly Office: 916.726.8308 Joel@WrightRealEstate.US View additional information at www.WrightRealEstate.US.

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