April, 2014

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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

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

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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

April, 2014

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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.

April, 2014

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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.