It’s Déjà Vu All Over Again for Luxury Home Sales
Annual closed sales produce another record-breaking performance
Greater Sacramento extended a multi-year trend of measurable growth in luxury home sales throughout 2019 by posting a record 1,035 closed transactions. The final year-end total surpassed the previous high celebrated just recently for 2018 by 6 percent. All market information presented by Lyon Real Estate is based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
During the fourth quarter alone, 234 closed luxury home sales were recorded throughout the region. This figure marked an 11 percent jump over the same period last year and was surely fueled by persistently strong sales in the feeder, move-up price point. New pending sales in the luxury space were actually 12 percent higher in December versus the prior year and signals that market momentum will indeed maintain a steady pace moving into 2020.
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. Approximately 4 percent of the total home sales throughout the region occurred in the luxury space throughout 2019. Nearly 85 percent of the 2019 luxury transactions however, took place in the $900,000 to $1,500,000 price range and only 200 properties were left on the market in that narrower bracket at year-end.
Luxury homes that closed during the fourth quarter were on the market an average of 81 days from their original list date and received on average, 93 percent of their original list price. The average sales price for the quarter was $1,212,000, down slightly more than 1 percent compared to the same period last year. The average price per square foot came in at $313 for properties that closed escrow during the fourth quarter.
Annualized luxury home transactions throughout the region followed a very typical pattern as Placer County recorded 35 percent of the sales in calendar year 2019, followed by Sacramento County with 32 percent, El Dorado County with 23 percent and Yolo County at 10 percent. There were approximately five months of inventory available on December 31 based upon the current rate of closed sales. This is widely considered a balanced market when considering both buyer and seller interests.
Pat Shea, president of Lyon Real Estate, states that “the local economic climate and our amazing luxury home values continue to inspire move-up buyers within our region. Continued job growth and upward pressure on employee compensation appear to remain in play all throughout Northern California. Conforming mortgage interest rates are extremely favorable and toggling between 3.5 and 4 percent. Migration from the San Francisco to San Jose corridor will persist as those with equity elsewhere can sell and find tremendous home values in our region. Buyers have jobs, money, financing and excellent choices in Greater Sacramento. The stage is truly set for 2020 to be yet another record breaking sales year in the luxury space.”
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.