Real estate remains a cornerstone of our economy and the news, as reported by the Sacramento Bee, that home sellers area actually making a profit again is wonderful.
“Those glory days when selling a home left you with money in your pocket are making a long-overdue return to Sacramento, new figures suggest.
“In recent months, traditional equity sales – in which sellers clear their loan balances and walk away with cash – reached their highest numbers across the Sacramento region since the last housing boom peaked in 2005, according to DataQuick, a San Diego-based real estate information service.
“For the first time in five years, traditional home sales added up to more than half the homes sold on the open market, the data firm said.
“That’s a big change from even this spring, when foreclosures and other distressed properties made up the majority of the Sacramento area market.
“Move-up buyers and downsizers are fueling the change, lured by historically low interest rates and pent-up demand, real estate professionals said. Well-priced houses in desirable areas are moving fast, many for above asking price, the latest data showed.
“It’s been clear most of this year that the move-up market was heating up,” said DataQuick analyst Andrew LePage. “It’s a slow return to normalcy.”
“In the three-month period from August to October, equity sales amounted to nearly 54 percent of the 10,000 homes sold across the four-county Sacramento area, DataQuick reported. Those figures don’t include houses sold to investors at auctions, a sizable chunk these days.
“It was the first time since 2007 that equity sales topped the 50-percent mark regionwide during those months, the firm said. And it’s not just market share: The approximately 5,400 equity sales recorded in August, September and October were the most in those months since the height of the housing boom in 2005, when about 7,500 equity sales were recorded in the same three-month span.”