Inventory Slips But Doesn’t Stall Local Housing Sales
The number of active and available homes for sale throughout Greater Sacramento declined a hefty 15 percent since October yet currently stands 2 percent above last year at this time. Market demand, measured by the rate of new pending sales, reflected a mere 1.6 months of remaining home supply on December 1st. This market information was presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
A total of 2,310 resale homes went under contract as pending sales, while 2,159 were posted as sold and closed across the entire region for the month of November. Both sales categories reflect significant decreases when compared to October figures but also exhibit a normal seasonal adjustment in buyer activity. There is reason to expect a strong conclusion to 2017, however, as the new pending sales reported for the month were 13 percent higher than November of 2016.
The average home sales price of $436,000 and median sales price of $390,000 for the region in November both reflect a 10 percent increase compared to this time last year. A current level of price stability is evident though, as the average sales price has toggled steadily between $431,000 and $437,000 over the previous six months. Greater Sacramento remains 10 percent below its highest average sales price record for a given month set in June of 2006 at $472,000.
The move-up and upper-end markets remained exceptionally active over the past three months. Specifically, the $400,000 to $750,000 price range enjoyed an 18 percent increase in closed sales and a 29 percent increase in pending sales versus last year at this time. For homes priced greater than $750,000, there was a 42 percent increase in closed units and a 35 percent increase in new open sales over the same period.
“There is no doubt that Greater Sacramento remains one of the hottest housing markets in the country,” says Pat Shea, president of Lyon Real Estate. “Buyer demand and the rapid rate of sales show no indication that a cooling is anywhere in sight. The anticipated bump in mortgage rates and prospective income tax changes in 2018 may be fanning the 4th quarter flames. Rest assured however, that our housing market heat will remain on high for the foreseeable future.”
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.