Sacramento Housing in May: Sales Unchanged YoY, Active Inventory up 30% YoY
• At 7:00 AM ET, The Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.
• At 8:30 AM, The Producer Price Index for May from the BLS. The consensus is a 0.3% increase in PPI, and a 0.2% increase in core PPI.
• At 2:00 PM, FOMC Meeting Announcement. The FOMC is expected to increase the Fed Funds rate 25 bps at this meeting.
• At 2:00 PM, FOMC Forecasts This will include the Federal Open Market Committee (FOMC) participants' projections of the appropriate target federal funds rate along with the quarterly economic projections.
• At 2:30 PM, Fed Chair Jerome Powell holds a press briefing following the FOMC announcement.
From SacRealtor.org: May 2018 Statistics – Sacramento Housing Market – Single Family Homes
May closed with 1,730 sales, a 9% increase from April’s 1,587. Compared to May 2017 (1,731), the figure is nearly unchanged. Of the 1,730 sales this month, 242 (14%) used cash financing, 1,056 (59.3%) used conventional, 290 (16.8%) used FHA, 96 (5.5%) used VA and 76 (4.4%) used Other† types of financing.CR Note: Inventory is still low, but now increasing significantly year-over-year in Sacramento.
Active Listing Inventory increased 20.5% from 2,082 to 2,509 units and the Months of Inventory increased from 1.3 to 1.5 Months. This figure represents the amount of time (in months) it would take for the current rate of sales to deplete the total active listing inventory. [CR Note: Active inventory is up 29.7% year-over-year]
The Average DOM (days on market) dropped from 23 to 20 month to month and the Median DOM dropped from 10 to 9. “Days on market” represents the days between the initial listing of the home as “active” and the day it goes “pending.” Of the 1,730 sales this month, 80.9% (1,400) were on the market for 30 days or less and 93.1% (1,611) were on the market for 60 days or less.