Resale Housing Market is Red Hot
New escrows in May reflect the highest number posted in the past two years
New open escrows reported in the month of May across the greater Sacramento region jumped 13 percent versus those for April and were also 6 percent greater than May of last year. More importantly, the new escrows were the highest reported in any given month since May of 2017 and marked five straight months of increased sales in all price points. This market information was presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
Entry-level homes, those priced below $400,000, continue to see the fiercest competition as new escrows were up 13 percent versus last year while inventory by month end rested 8 percent below that of May 31, 2018. Based upon buyer demand and the rate of new listings entering the market, there remains less than one month of supply currently available throughout the region.
The move up market — homes priced between $400,000 and $750,000 — offers a bit more breathing room with 1.5 months of inventory on the market based upon the current rate of new sales. Even though inventory was up 6 percent versus last May, new open escrows were 11 percent greater.
Activity for homes priced above $750,000 continues to be extraordinary with new sales posted in both the past two months, far exceeding any other month in recent years. Specifically, new open escrows posted in May were 16 percent greater than April and 20 percent above May of 2018. It is worth noting however that inventory rested at 985 properties available for sale throughout the region in this price range at month end. That is the highest monthly inventory figure noted in the upper-end in more than 10 years.
Closed sales continue to lag somewhat as the rate of new open escrows has continued to climb month after month and transactions often require 30 to 45 days to be completed. Market-wide and in all price points, closed sales were up 7 percent versus April but off nearly 10 percent compared to last May. Closed units will likely continue to climb over the next few months.
“The news around affordability, growth and development for greater Sacramento are fueling Northern California and national media outlets and thus inspiring a steady stream of buyers,” says Pat Shea, president of Lyon Real Estate. “Declining mortgage rates are supporting the cause as well. Overall, the market should remain red hot for at least the next few months. Sellers, especially in the upper-end, should be certain their properties have the best agent, price and marketing to maximize their financial opportunity.”
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.
Category Real Estate
Elizabeth Penney is a content writer for Lyon Real Estate and the Lyon Local blog. A Sacramento native with a marketing background, she shares her insider knowledge on restaurants, attractions and outdoor activities throughout the greater Sacramento area and beyond.