Sacramento Real Estate Market Hot, But Stable
Closed listings averaged no less than 97 percent of original list price since January
At the end of October, 4,894 homes remained active and available for sale throughout the 4-county Greater Sacramento region. This marked a 6 percent drop in inventory since September 30th and a 17 percent reduction compared to last year at this time. Based upon an unrelenting rate of sales, a meager 2.2 months of inventory remained at month end. This market information was provided by Trendgraphix Inc., a Sacramento-based reporting company, and reported by Lyon Real Estate.
“Newly opened escrows or pending sales totaling 2,665 in October indicate our region is not yet ready for a seasonal slowdown,” says Pat Shea, president of Lyon Real Estate. “That number represented an 8 percent increase over a busy September and a 25 percent increase over October of 2014.”
Sold and closed numbers fell off 9 percent compared to September but remained very similar to last year. According to Shea, “there are more cancellations occurring compared to last year as buyers believe they can find alternative properties when transactions experience challenges.”
Another factor extending escrow closing periods started in October as the Consumer Financial Protection Bureau (CFPB) integrated the Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA) disclosures and regulations. This impacted buyers, sellers, agents, lenders, title companies, etc. on almost all transactions involving a mortgage.
All price points however, remained on the pending sale bandwagon in October. The move-up market between $350,000 and $750,000 experienced an 11 percent increase in sales compared to September and a 50 percent improvement over October of 2014. The upper-end, specifically $750,000 and above, enjoyed a 23 percent increase versus September and a 50 percent improvement compared to last year. Below the $350,000 price point the region has a sparse 1.5 months of available inventory which is 32 percent less than one year ago.
Shea added that the market is hot but stable. “The median price remained in the $325,000 to $330,000 range for the past 6 months and finished October approximately 7 percent higher than one year ago. The average price per square foot fluctuated between $193 and $195 for the past 7 months. Lastly, closed listings have averaged no less than 97 percent of original list price since January. Interest rates remain fabulous so now sure looks like a great time for a move.”
About TrendGraphix, Inc.
TrendGraphix, Inc. is a real estate reporting company based in Sacramento that uses local Multiple Listing Service (MLS) data to provide highly-visual market statistical graphs to real estate brokers, agents, and MLS/Realtor associations across the country. TrendGraphix’s programs are currently used by tens of thousands of agents in more than 100 brokerages in 18 states. For more information about TrendGraphix, visit www.trendgraphix.com