Home Sales Continue to Sizzle in Greater Sacramento
October new open escrows up 14 percent over last year
During the month of October, 2,427 resale homes were placed under contract across the greater Sacramento region. That figure reflected a 7 percent increase over a solid September and an extraordinary 14 percent increase over a very productive October of 2018.
“Buyer behavior suggests that they remain very enthused with home values across the region and are not quite ready to take a break for the holiday season,” says Pat Shea, president of Lyon Real Estate. “Employment numbers are historically high, there is upward pressure on wages, consumer confidence is solid, mortgage interest rates are still ridiculously low and thus, everything looks favorable for greater Sacramento.”
Closed sales for the month were up 5 percent compared to September and 2 percent versus October of 2018. This was both logical and expected due to the steady, new open escrow count posted over the past few months. This market information was presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
The number of active and available homes for sale dropped 10 percent since September and rested at a concerning 23 percent lower than October of last year. Shea believes this could hamper momentum as “persistent buyers will have fewer opportunities and choices.” He stated that “based upon the current rate of sales, the region has a mere two months of available housing supply. A balanced market is largely viewed to have four to six months of supply. Thus, more inventory at this time would surely be better.”
The $750,000 and above price point remained remarkably busy over the past three months, as 588 properties were posted as sold and closed transactions. This reflected a notable 14 percent jump versus the same period last year. Although new open escrows in the upper-end did fall off 8 percent versus September, the total number posted was actually 35 percent higher than October of 2018. Inventory currently remains below five months of supply, which is considered quite low in greater Sacramento for this price range.
The average closed sales price, considering all properties in October, was $471,000 and the closed median price was $420,000. This demonstrates that prices are still relaxing and perhaps stabilizing after reaching highs of $484,000 and $435,000, respectively, in June. The averages are also approximately 5 percent higher than those posted for last October.
New listings entering the market last month fell off 12 percent versus September and were 17 percent lower than October of 2018.
“This is counter intuitive, as greater Sacramento currently presents the absolute best market conditions for anyone thinking about selling their home in the near future,” Shea added. “Why wait until inventory and mortgage rates start rising again? Anyone considering moving up, downsizing or changing locations should think about it right now. One can never be certain what changes the new year may bring.”
About Lyon Real Estate
Lyon Real Estate is the leading independent real estate brokerage company in greater Sacramento (Sacramento Business Journal). We are proud to be home grown, locally owned and internationally known. Lyon has served the area for more than 70 years. In 2018, the company closed 6,411 transactions worth a total of $2.9 billion in sales volume. Lyon Real Estate has more than 900 agents in 17 offices located throughout the region. The company is a member of the Leading Real Estate Companies of the World®, the largest network of premier locally branded firms, as well as LeadingRE’s Luxury Portfolio International® program. In addition to its real estate services, Lyon Real Estate offers RELO Direct, a global relocation program. For more information about Lyon Real Estate, visit GoLyon.com and follow us on Facebook.com/LyonRealEstate.
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.