Endless Summer for Greater Sacramento Home Sales
September new open escrows up 22 percent versus 2018
Greater Sacramento is experiencing an unusual delay in the typical seasonal slowdown of resale homes. The 2,443 new open escrows reported in September marked a 22 percent increase compared to the same month last year. New opens for the entire third quarter also reflected an 8 percent increase versus 2018 after starting out the year a little softer. The persistent rate of new sales resulted in 4,652 homes left available for sale at month end, a notable 19 percent lower than last year at this time. This market information is presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
However, after months of upward pressure, price stability continued with a pattern similar to last year. The average closed sales price of $477,000 and median of $429,000 for the third quarter were both nearly the same as second quarter postings. These key metrics also reflect an approximate 4.5 percent increase year-over-year. Closed escrows for the third quarter were on the market an average of 34 days versus 31 last year and received approximately 98 percent of original list price.
The upper-end market — homes priced above $750,000 — remained an unexpected bright spot throughout the third quarter. While the inventory level ended September at 4 percent lower than last year, 623 new open sales for the quarter were 25 percent greater than last year. The sold and closed properties total for the third quarter were a remarkable 624, up 13 percent versus 2018. The positive momentum in new open escrows will continue to produce elevated closed sale results in the upper-end over the coming months.
“There appears to be no decline in the buyer appetite for excellent home values and the quality of life offered throughout the greater Sacramento region,” says Pat Shea, president of Lyon Real Estate. “From a historical perspective, our housing market remains remarkably active. This is clearly evident as based upon the current rate of sales, there remains approximately 2 months of available inventory. A balanced market is typically considered four to six months.”
He added, “Normal seasonal fall-off has been delayed by elevated employment, upward pressure on wages, persistently low mortgage interest rates and continued migration from the San Francisco Bay area. Even with the lower standing inventory, new listings entering the market will provide plenty of opportunity to maintain our steady sales activity throughout the fourth quarter.”
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.