Sacramento Metro Real Estate Market
Metro Counties
Intro
Using raw and monthly MLS data from 3 Counties (Sacramento, El Dorado, Placer) for New, Active, Pended, and Sold listings, the average Cumulative Days on Market, and the average Median Price. The data for the Composite Average is for the 52 zip codes, not these 3 Counties.
From this “raw data”, my calculations result in the momentum of each Median Price, the ’10 Yr Mmm Average’ for each data item, ‘Supply’ (New+Active), ‘Demand’ (Pend+Sold), ‘Lean Score’ (long and short-term averages indexed for each data item), ‘Consumption’ (Demand/Supply), ‘Appetite’ (Pend/New), and ‘Turnover’ (Sold/Active).
Geography
Summaries
History of This Month
Median Price
12MMA
Momentum
Inventory
The real estate market was created to exchange “products”: money and houses. When a house is made available to prospective buyers, there is a response to that “Product”. That response can be shown by the current and historic data and the trends and shapes of those lines. An ACTIVE listing is briefly also NEW. When a seller and buyer enter escrow, the “Product” becomes PENDING. If that buyer and seller execute the contract, the “Product” becomes SOLD. If the seller actively removes their listing, it is CANCELED. If the listing period comes to an end, it is EXPIRED.
The life of all “Products” (MLS only) can be seen in these charts and blurbs.
The data for New and Pending listings render this calculation called “appetite” for new residential listings for the month.
The data for Active and Sold listings render this calculation called “turnover” of residential listings for the month.
Momentum
Momentum Gain
CDOM
Cumulative Days on Market (CDOM) represents the number of days a listing spends ACTIVE until SOLD. The number of days PENDING are excluded from the CDOM number.
Lean Score©
Defined
Charted are 11 data elements: New listings, Active listings, Pended listings, Sold listings, Canceled Listings, Months of Inventory (MoI), Cumulative Days on Market (CDOM), Median price, Median price momentum (Þ), Appetite, and Turnover.
The ‘short term’ average (10 year) and the ‘long term’ average (~25 year) are tracked for each data element.
The variance between the current value of each data element and its ‘short’ and ‘long’ averages are calculated.
A positive “Lean” value (leans toward Seller) and negative value (leans toward Buyer) for a data item will be interpreted in different ways for each data element.
Inventory of houses most certainly grows and does not recede over time. I’ve known a house to decay and become uninhabitable but never dead.
- When the Lean score for
- New listings leans toward
- Sellers (positive), it means the number of current New listings is low and not adding competition to a Seller’s population of buyers thereby giving Sellers more leverage.
- Buyers (negative), it means the number of current New listings is high and growing the selection and competition in the market for homes, giving buyers more leverage.
- Active listings leans toward
- Sellers (positive), it means the number of Active listings is low and not providing competition to a Seller’s population of buyers.
- Buyers (negative), it means the number of Active listings is high and provides the selection and competitive market that gives buyers leverage.
- Pended listings leans toward
- Sellers (positive), it means the number of Pended listings is high and removing competition from a Seller’s population of buyers giving sellers more leverage.
- Buyers (negative), it means the number of Pended listings is low and giving sellers possible motivation to reduce prices, thereby giving buyers more leverage.
- Sold listings leans toward
- Sellers (positive), it means the number of Sold listings is high, reducing competition and making it much more probable that Sellers product will soon sell, giving Seller more leverage.
- Buyers (negative), it means the number of Sold listings is low, maintaining pressure on sellers to reduce prices.
- Months of Inventory (MoI) leans toward
- Sellers (positive), it means low, good for Sellers
- Buyers (negative), it means high, good for Buyers
- Cumulative Days on Market (CDOM) leans toward
- Sellers (positive), it means low, good for Sellers
- Buyers (negative), it means high, good for Buyers
- Median price leans toward
- Sellers (positive), it means high, good for Sellers
- Buyers (negative), it means low, good for Buyers
- Median price momentum (Þ) leans toward
- Sellers (positive), it means high, good for Sellers
- Buyers (negative), it means low, good for Buyers
- New listings leans toward
Distressed
When home owners become under-paid, unemployed, and over-burdened, houses can be foreclosed or be sold “short”. This chart shows the volume of “distressed” sales in our 3 counties. A foreclosure frequently becomes an REO (Real Estate Owned) and to avoid foreclosure, sellers can sometimes be allowed by their lender to sell “short” of the loan balance.
Peaks
In the month, these zip codes had changes resulting in a new high or a possible swing to a lower direction.