Sacramento Area Real Estate Maintains Steady Pace
Monthly Market Update
“Fortunately for Sacramento area home buyers, there were 50 percent more homes available on the market in the month of June compared to one year ago,” says Pat Shea, president of Lyon Real Estate. “Significantly more selection combined with relentlessly low interest rates paved the way for over 2,700 new open escrows in June,” he added. This represents the highest volume of new open escrows in any single month since the second quarter of 2012, according to information provided by Trendgraphix and reported by Lyon.
New open escrows have averaged approximately 2,559 over the past four months, mapping very closely to 2,577 over the same period last year. This listing and sales pattern indicates a sustained stability in the real estate market, according to Shea. The median sales price of $310,000 at month-end is yet another factor supporting a normal pace. This number represents a 10 percent increase year-over-year. The jump in median price from June 2012 to June 2013 was nearly 40 percent.
Shea goes on to share what he calls “additional fun facts that signify the Sacramento region is in a healthy real estate market.” There is only a 2 – 2.5 month supply of available homes for sale based upon the current rate of sales and existing inventory. Sellers are averaging approximately 98 percent of original list price at close of escrow. Over 90 percent of homes that sell are of the equity variety and non-distressed. Average days on the market dropped from 53 in January to 37 in June.
The move-up market and upper-end continue to play a significant role in the resale landscape as all price points continue to experience strong sales. Shea states that “job growth numbers in all notable sectors are improving. Major downtown construction, infill residential projects and new home subdivisions in Placer, Yolo and El Dorado counties will continue to drive employment numbers and related business opportunities. Yes, the region ended June with 5,800 resale homes listed for sale, the most since the ‘great correction.’ That’s a good thing, considering we maintain thousands of interested buyers and remarkable financing opportunities. It’s also good thing to remember that our inventory still remains 56 percent lower than that of June, 2008.”