Resale Home Market Keeps Churning
The Greater Sacramento region does not appear to be in any hurry for a seasonal slowdown. The 2,663 new open escrows reported in September marked a 7 percent increase compared to the same month last year. That pace also left the 4,541 homes available for sale at month end a mere 1 percent greater than August and 7 percent below September of 2016. This market information is presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
Price stability however, after months of upward pressure, continued to follow the same pattern as last year. The average closed sale price of $426,000 and median of $385,000 for September, both marked the lowest totals in these well watched market indicators since April. Regardless, the key metrics still reflect slightly more than an 8 percent increase year-over-year. Closed escrows were on the market an average of 30 days and received approximately 98 percent of original asking price. These numbers remained very consistent with those of the strongest sales months over the past year.
The upper-end market — homes priced above $750,000 — told a very interesting story for this time of year. While the inventory level ended September at 4 percent higher than last year, 173 new open sales were 45 percent greater over the same period. The sold and closed properties total for the month was 16 percent higher than last year. This significant jump in new opens will certainly produce elevated closed sale results in the upper-end over the coming months.
“While overall sales in the market remain very strong, opportunities for buyers in the entry level continue to evaporate,” says Pat Shea, president of Lyon Real Estate. This is clearly evident as the amount of inventory priced below $350,000 was 22 percent lower at month-end compared to September of last year. Consequently, closed sales for the month were off 25 percent as well.
“Positive and sustainable sales results are very exciting when you look at the market as a whole,” says Shea. “We are fortunate to see strong job numbers and some upward pressure on wages that boost market momentum in the move-up and upper-end. Entry-level buyers will need to be creative, resourceful, patient and lucky however, in the coming years if they are to enjoy the benefits of home ownership. Assistance from family and friends will likely be their ticket.”
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 250 brokerages in 48 states. For more information about TrendGraphix, visit www.trendgraphix.com.