Greater Sacramento Home Sales Bounce Back
January new pending sales jump 33% versus December
The Greater Sacramento real estate market bounced back during the month of January as new pending sales jumped 33 percent when compared to December figures. The new sales reported slightly topped January of 2018 as well; a month that launched the first quarter of last year on a very hot pace. This market information was presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
Fortunately, 2,277 new re-sale listings also came to market in January across the four-county area. This marked a 26 percent increase over January of last year when supply was viewed as critically low. Regardless, the region still holds less than 2 months of available inventory based upon current buyer demand.
The region’s average price for closed sales in January rested at $430,000, just 3 percent higher than one year ago. This does reflect a typical seasonal adjustment though, as the recent 6-month average is actually $447,000. “Sales activity in the move-up and upper-end price points typically softens over the winter months and places downward pressure on median and average sales prices. Moderate increases are likely to resume,” states Pat Shea, president of Lyon Real Estate.
The entry level — properties below $400,000 — remains the most competitive space even with 10 percent more properties in standing inventory compared to last January. The rate of new sales month after month however, continues to keep pace with new listings entering the market. “This condition extends the challenge for first time buyers and also poses potential market wide risk, as move-up activity is crucial to the housing eco-system,” says Shea.
Currently, the move-up range of $400,000 to $750,000 remains quite healthy with a 4 percent increase in new sales reported in January compared to last year. Sales in the upper-end also continue to churn as new pending sales are nearly equal year-over-year. Inventory is now more favorable to buyers with a 41 percent increase in the move-up and a 28 percent lift in the upper- end versus January of 2018.
“Now is best time to place your home on the market as inventory is still seasonally low and buyer activity has notably returned,” Shea adds. “You still want to price reasonably, prepare for excellent showing condition, and select a very good agent in order to negotiate your highest and best contract. The stability in our prices, a certain influx of new inventory as spring draws near, excellent mortgage interest rates and solid employment metrics will keep the market very busy and highly competitive once again, throughout all of 2019.”
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.