Inventory Dips in Sacramento Real Estate
Entry level sees 38% decrease in homes available for sale compared to Nov. 2014
The Greater Sacramento real estate market started to show signs of a seasonal slowdown during the month of November while still posting strong numbers compared to the same time last year. Most notable was a 20 percent decrease in homes active and available for sale compared to November of 2014. This market information was provided by Trendgraphix Inc., a Sacramento-based reporting company, and reported by Lyon Real Estate.
“Even though some buyers are taking a holiday break, low inventory will keep the market very competitive over the winter months,” says Pat Shea, president of Lyon Real Estate. “The entry level below $350,000 continues to experience the most pain due to a 38 percent decrease in homes for sale coupled with a 12 percent increase in new pending sales versus last November.”
The move-up price range from $350,000 to $750,000 remained remarkably aggressive as 34 percent more homes turned to pending sale and 29 percent more closed escrows were posted compared to last year. Inventory dropped only 6 percent, leaving plenty of opportunity for Holiday shoppers.
The upper-end market, specifically homes over $750,000, experienced the most significant decline in sales, with only 69 new pending sales and 66 closed escrows posted for November. These were the lowest monthly figures posted for 2015 since the first quarter. Monthly sales totals in the 80’s, 90’s and low hundreds were the norm for the previous six months.
Shea states that “December closed sales numbers will likely rebound as buyers, sellers, agents, title companies and lenders adjust to new regulations on most transactions involving a mortgage.” Many escrow periods have been extended since October when the Consumer Financial Protection Bureau (CFPB) integrated changes with the Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA) disclosures and regulations.
“Even with a looming mortgage interest rate hike, local affordability and a positive economic outlook for Greater Sacramento point to continued growth in our market,” said Shea. “The median price has averaged $328,000 for six straight months; stable and steady is the new norm.”
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