Greater Sacramento Inventory Hits All-Time Low
Fourth-quarter sales remained very steady as new listings faded
A strong fourth quarter wrapped up yet another banner year of robust home sales for the greater Sacramento region in 2019. Closed units from October through December were nearly 5 percent higher than the same period last year. New open escrows logged for the quarter were 6 percent higher year-over-year, indicating that buyer enthusiasm is not waning. This market information was presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
Conversely, the number of new listings entering the market each month declined steadily in the second half of 2019. New listings posted in the fourth quarter alone were down 13 percent from last year. These seller and buyer metrics left the market with a meager 2,542 homes active and available on the market on December 31, more than 33 percent lower than last year.
“Inventory typically declines at year-end and did indeed drop just below 3,000 homes available back in January of 2017. Our market remains in a precarious place though, as the region has reached its lowest mark in the past two decades,” says Pat Shea, president of Lyon Real Estate.
The average sales price for homes throughout the region continued a multi-year climb in the first half of 2019 and hit a new market high of $484,000 in June. Subsequently, a relaxing of that metric ensued with the fourth quarter average much closer to $467,000. That number, however, still reflected a 4 percent increase in the fourth quarter average sales price year-over-year. Homes that closed escrow in the fourth quarter were on the market an average of 42 days and received an average of 97 percent of their original list price.
“Buyers are not going away anytime soon, as our economy remains strong,” says Shea. “Locals have jobs, money, and financing. Mortgage rates continue to toggle between 3.5 and 4 percent. And, the migration from Silicon Valley and the San Francisco Bay area continues. Compared to other major market areas in California, greater Sacramento is highly affordable.”
Many analysts wonder, however, if adequate inventory will enter the market in 2020 to meet the relentless buyer demand. Shea offered his thoughts: “There are always more choices in the move-up and upper-end price points. This is a perfect time for existing property owners to find their dream home, dream location and perhaps both. Many will since mortgage rates remain notably in their favor. New construction opportunities and inventory will also continue to provide relief for buyers in all price ranges. More properties will certainly appear on the market in the new year and moving into spring. It will remain a tight but very busy market for the foreseeable future.”
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.