Luxury Home Sales Keep Breaking Records
Closed sales in the third quarter up 15 percent versus 2018
The greater Sacramento region posted 796 closed luxury home sales thus far this year through Sept. 30. That is 5 percent higher than last year at this time and strongly positions the price point to reach yet a new annual record. This market information was presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
Last year the market enjoyed a 32 percent increase in annual luxury sales and decisively dethroned the former champion (2005), when sales figures were largely over inflated due to sketchy financing. New open escrows during the third quarter of 2019 guarantee that current market momentum will continue as 303 luxury properties were placed under contract, a 19 percent increase versus last year at this time.
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.
Analysts often expect a seasonal cool down during fall and winter months and point to available luxury home inventory resting at 545 properties on Sept. 30. That number is relatively high based upon historical standards. The rate of sales, however, must be factored into the equation. Specifically, there was 46 months of supply on the market back in 2008 due to sluggish buyer demand. Currently, there is approximately six months as buyers remain very active and continue to place properties under contract at a rapid pace.
Sold and closed sales for the third quarter remained quite strong as 315 properties were recorded. Even though this number fell 10 units shy of those posted in the second quarter of this year, it did mark a 15 percent improvement over the third quarter of 2018. The combined average sales price for July, August and September was $1,208,000, nearly identical to 2018 and 2017 figures.
The average price per square foot for the quarter was $308. Sellers received an average of 94 percent of their original list price, precisely the same as last year. The average time on the market increased slightly to 73 days, compared to 60 days in the third quarter of 2018.
“Good economic news continues to surround Northern California and consumer confidence is very high” says Pat Shea, president of Lyon Real Estate. “The entry-level and move-up price points remains exceptionally vibrant throughout the entire greater Sacramento region for this time of year. All of that news and our exceptional home values continue to fuel the luxury market. Higher inventory under these conditions is a good thing as buyers have more choices and are acting swiftly. Look for a strong finish to 2019 and another record setting year.”
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.