May Flowers Bloom Big For Sacramento Area Real Estate
Monthly Market Update
Selling season remained in full bloom as Sacramento, Placer, Yolo and El Dorado counties logged a combined 2,769 new open escrows during the month of May. This aggressive rate of sales kept the region in a strong seller’s position even though available listings topped the 5,300 mark for the first time since December of 2011. This information was provided by Trendgraphix and reported by Pat Shea, President of Lyon Real Estate.
The median sales price closed out May at the post-recession high of $312,000 compared to a meager $185,000 at the end of 2011. “Distressed properties and investor activity were still the norm back then,” said Shea. “Approximately 85% of the current sales transactions are equity sellers looking to buy again.”
The upper end, specifically $750,000 and above, remains red hot, with over 100 new open sales in May. Over the past three months, this price point has experienced a 33% increase in homes pended as compared to the same period in 2012.
All counties are experiencing a renewed upward pressure in their average price per square foot. The region finished the month at a combined $183 per square foot. Individually, they finished the month of May as follows: Yolo $207 Placer $195, El Dorado $188, and Sacramento at $174.
Average days on the market dropped back down to 39 and sellers are currently averaging 99% of their asking price. “All of these market metrics add up to an exceptional time to sell,” said Shea. He further added, “Amazingly, it’s also a fabulous time to buy; 50% of households in our region can afford to purchase the median priced home per the California Association of Realtors. Alternately, affordability in most of the Bay Area and Silicon Valley remains in the teens and low 20s. The prospect of a 30-year loan at 4% should also be enough to inspire every first time or move-up buyer.”