Luxury Home Sales Are Breaking Records in the Greater Sacramento Region
The Greater Sacramento region closed 759 luxury home sales thus far this year through September 30th. That is 30 more than all of 2017, a year that enjoyed a 25 percent increase in annual sales compared to 2016. More importantly, the market is well on its way to dethroning the current champion 2005, when sales figures were largely over-inflated due to sketchy financing. This market information was presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
Luxury Portfolio International recognizes home sales above $900,000 in the Greater Sacramento region as properties that map most accurately toward consumer expectations regarding luxury real estate.
Some analysts are suggesting that a cool down is underway as active and available luxury home inventory rested at 583 properties on September 30th, the highest in 10 years. The rate of sales however, must be factored into the equation. Specifically, there were 46 months of supply on the market in 2008 due to sluggish buyer demand. Currently, there are a mere 8 months as buyers remain very active and are placing properties under contract at a rapid pace.
Sold and closed sales for the third quarter remained quite strong as 272 properties were recorded. Even though this number fell 25 percent below the extraordinary 343 posted in the second quarter of this year, it did mark a 37 percent improvement over the third quarter of 2017. The combined average sales price for July, August and September was $1,210,000, 3 percent higher than last year at this time. The average price per square foot was $323. Sellers received an average of 95 percent of their original list price, precisely the same as last year. The average time on the market, however, dropped to 60 days, 28 percent lower than the third quarter of 2017.
New open escrows for the quarter guaranteed that market momentum will continue as 265 luxury properties were placed under contract, a 20 percent increase versus last year.
“Slight upward pressure in historically low mortgage interest rates and the prospects of midterm elections do little to deter luxury home buyers,” says Pat Shea, president of Lyon Real Estate.
“The strong Northern California economy and incredible home values in Greater Sacramento are driving the market. Higher inventory under these conditions is a good thing as buyers have more choices and are acting swiftly. Look for a strong finish to 2018 and a great start to the new year.”
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.