Metro Study - (Sacramento, CA– May 1, 2011) As we enter 2011, the Sacramento market is still searching for signs of recovery from the economic downturn, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

However, there is less troubling news in the resale market in 1Q11. As MLS listings declined over the past quarter, sales have increased. The MLS now has 3.5 months of supply of resale inventory.

There were 2,195 annual new home closings for 1Q11, a 38% decline from one year ago. Both Starts and Closings have significantly slowed. However, Closings have continued to outpace Starts, which further reduces the standing inventory levels.

Finished Vacant SFD inventory increased slightly in 1Q11, to 430, a 2.8 month supply. “This is the lowest level of Finished Vacant inventory we’ve seen since 2005,” said Greg Gross, director of Metrostudy’s Sacramento Region. “Homebuilders are waiting for a demand to return to the market. However, a quick turnaround is not likely.”

At the end of 1Q11, lot deliveries in Sacramento have slowed dramatically. The market is continuing to absorb more lots than were delivered, causing a decrease in Vacant Developed lots.

“The economic downturn will batter the California state capital well in to 2011. Some local economists have been optimistic that the market would hit the proverbial ‘bottom’ in 2008, but as we enter 2011 it appears we are still searching for signs of recovery,” said Greg Gross, director of Metrostudy’s Sacramento Region.

About Metrostudy
Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data for approximately 70% of the United States housing market, the company is recognized for its consulting expertise regarding real estate development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit http://www.metrostudy.com/.

Contact:
greg gross
925.826.3801
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