Resale Housing Lands Gently at Year End in Greater Sacramento
Greater Sacramento enjoyed yet another banner year of feverish activity but did close out 2017 in a very predictable manner. Inventory slipped to 2,810 homes left active and available on the market, nearly identical to last year at this time. Sold and closed sales reported for the month were down a notable 9 percent compared to December of 2016 however, the combined fourth quarter totals were only 3 percent shy of last year’s mark.
New buyers maintained their enthusiasm throughout the region at year end, as positive local economic news continues around the job market, and mortgage interest rates that hover near 4 percent aid affordability. New open escrows during the 4th quarter were 6 percent greater than 2016 and for December alone, 12 percent higher year over year. This market information was presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
The average sales price for homes sold climbed steadily in the first half of 2017 and hit a recent high of $437,000 in June. Upward pressure softened slightly thereafter with the average price consistently toggling between $428,000 and $432,000 over the last 6 months of the year. These figures reflect an approximate 9 percent increase in average sales price year-over-year.
Uncertainty around potential federal income tax changes failed to deter buyers in the move-up and upper-end markets during the 4th quarter. Closed sales in the $400,000 to $750,000 price range were up 18 percent and new open escrows up 31 percent year-over-year. Closed sales above $750,000 increased 44 percent and new opens 34 percent within the same time frame.
“Real estate markets are hyperlocal and Greater Sacramento remains hyperactive in all price points,” says Pat Shea, president of Lyon Real Estate. “Organic growth from local buyers and increased migration from the San Francisco Bay area, East Bay and San Jose will continue. Inventory challenges, especially in the entry level, are the new normal. There is every reason to expect however, that 2018 will see a repeat of the sales patterns we’ve observed over the past few years. Prices and interest rates will continue to inch up, so make your move soon.”
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.