Resale Inventory Still Tight as Buyers Stay Busy
New open escrows in August signal continued market momentum
Closed sales reported over the last three months across the greater Sacramento region are down approximately 6 percent compared to last year at this time. During the month of August however, 2,739 resale, residential properties were placed under contract throughout the market area. That new open escrow number reflects a 3 percent jump over July sales, which for a brief moment was the busiest month of the year. Over the last few years, only this past May and May of 2018 have seen more homes placed under contract in a given month.
On the other side of the spectrum, resale housing supply did enjoy a slight 2 percent increase during the month of August, though it remains a tenuous 16 percent lower than last year at this time. The market is thus viewed as very tight, having less than 2 months of supply based upon the current inventory level and persistent rate of new sales. The entry-level, or homes priced below $400,000, is surely in dire straits. There are 37 percent fewer homes available for sale compared to August of last year. This market information is presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
Regardless of the restrained supply and tenacious buyer demand, price stability still appears to be evident due to a few additional metrics. The average closed sale price of $476,000 for August marked a slight softening after three straight months of tracking closer to $484,000. The median of $431,000 has maintained a 4-month pattern of floating between $431,000 and $435,000. Both the average and median sales prices for August exhibit approximately a 5 percent increase versus last year at this time.
“The move-up and upper-end price points remain remarkably strong and continue to reveal steadfast buyer confidence,” says Pat Shea, president of Lyon Real Estate. He added that “the $400,000 to $750,000 price range saw a 17 percent increase in new open escrows last month versus August of 2018. Above $750,000, there was an extraordinary 43 percent jump versus last year continuing what is now a six month surge of high sales activity.”
“August has often been a softer sales month due to last hurrah summer vacations and back-to-school priorities,” says Shea. “This year, something different is clearly in play. The sales trends suggest an unrelenting stream of eager buyers still seeking the excellent home values in our region and inexplicably low mortgage rates are certainly aiding their cause. You can surely expect strong sales numbers to continue throughout the remainder 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.