Luxury Home Sales Maintain Momentum
Quarterly Luxury Market Update
Luxury home sales throughout the Greater Sacramento region enjoyed an additional 11 percent increase in unit sales in 2014 when compared to a historically regarded, very robust 2013. Remarkably, the 365 closed sales above $900,000 represented more than a ninety percent increase over sales figures posted for the entire year in 2012. These findings were released by Trendgraphix and reported by Lyon Real Estate as part of the company’s quarterly luxury report.
“Luxury homes in our region are available at an extraordinary value compared to those found in comparable communities across the entire state,” says Pat Shea, president of Lyon Real Estate. “The median price of a home in the city of San Francisco topped one million dollars in the summer of 2014, while the average median from San Francisco to San Jose is near double that of Sacramento.”
New pending sales for the Sacramento region averaged 24 per month during the 4th quarter of 2014, identical to the year-end finish of 2013. Shea believes this represents evidence of a sustained momentum in the luxury market and groundwork for a repeat performance in 2015.
Standing inventory of 271 available homes in the luxury price range is currently 11 percent higher than one year ago but has settled into a seasonal pattern. Specifically, inventory above the $900,000 list price has declined 30 percent below the high water mark of 393 active listings that were on the market in September. The year-end number also represents the lowest active listing count since February and left approximately 10 months of inventory based upon the current rate of closed sales.
“The volume and quality of luxury properties available in the Greater Sacramento region should continue to inspire cash buyers from both inside and outside our market area through 2015,” states Shea. “Our inexplicably low interest rates will likely keep those moving up busy as well.”