Luxury Home Market Remains on the Move in Greater Sacramento
Quarterly Luxury Market Update
Homes sales in the $900,000 and above price point continue to play a significant role in the final phase of the financial recovery throughout the Greater Sacramento region. Quite notably, 33 percent more closed escrows were recorded in the second quarter of 2014 compared to the same period last year. These findings were released by Trendgraphix and reported by Lyon Real Estate as part of the company’s quarterly luxury report.
“Inventory of homes in the luxury space has increased approximately 20 percent over the second quarter of 2013,” says Pat Shea, president of Lyon Real Estate. “New open escrows however, are up seven percent leaving only eight months of inventory based upon the current rate of sales.” It’s very common to be running with more than 10 months of inventory in this price range according to Shea. He added that “Placer, Sacramento, Yolo and El Dorado counties combined, endured periods of 25-30 months of supply in the upper-end at the peak of the great recession.”
The sweet spot for luxury home sales remains in the $900,000 – $1,500,000 collection where the four county region has averaged 41 sales per month since April. Pricing and staging your home properly while in that range typically results in a sale within 62 days. This reflects the lowest number of days on the market in more than two years while sellers are also averaging 96% of their asking price.
Above $1.5 million, recent closings averaged a mere four per month. At the upper end, months of inventory, continuous days on the market and percentage of list price earned, all change substantially.
“Lyon Real Estate enjoys a partnership with Luxury Portfolio International that maintains their position as The Luxury Leader in Greater Sacramento” says Shea. “Agents Joey Aronson and Tracy Hightower both closed sales in the 2 million dollar price point last quarter while Tom Phillips, Debra Massey and Hilary Devine closed escrows in the 1.5 to 2 million dollar range. Strong employment numbers, relentlessly low interest rates and the excellent selection of available properties should power the luxury market right through year’s end.”