Luxury Home Sales Maintain Steady Pace
New open escrows up 10 percent versus last year
New open escrows in the greater Sacramento luxury home market met and exceeded those that lit up the scoreboard last year during the months of April, May and June. This followed what was already another strong start to the year and signals an opportunity to repeat 2018’s record setting, closed sales performance. During the second quarter, 364 properties were placed under contract as new open escrows. This is nearly a 70 percent jump from the prior three months and a 10 percent increase over the same quarter last year.
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. Less than 4 percent of the homes sold year to date fall into the luxury category.
Closed sales for the quarter lagged slightly with 320 properties changing hands. This resulted in a 7 percent decline versus the second quarter of 2018. However, the year-to-date market activity reflected 476 total closed sales on June 30, only 13 shy of last year at this time. Luxury homes that closed escrow in the second quarter sold for an average of $314 per square foot, received 97 percent of list price and were on the market an average of 47 days. This market information was presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
Active and available luxury inventory rested at 627 properties on June 30, 8 percent higher than last year at this time. Only 70 percent of those homes were available in the $900,000 – $1,500,000 price range where 85 percent of the luxury home sales typically take place in the greater Sacramento area. Based upon the rapid rate of new open escrows, that narrower market segment was left with just 4.2 months of inventory. Considering 2019 market metrics in general, this currently is viewed as more of a balanced market with no special advantage to seller or buyer.
“Amazing home values, a strong local economy and persistent migration from the San Francisco Bay Area are causing greater Sacramento luxury home sales to reach new heights year after year,” says Pat Shea, president of Lyon Real Estate. “Closed sales in the luxury space maintained a steadier pace thus far this year but nearly equaled year-to-date 2018 figures by June 30 . New open escrows for the month of June were up 15 percent compared to last year, signaling strong momentum remains in the air for the summer months ahead.”
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.