Greater Sacramento Home Sales Play Boomerang
January New Pending Sales Jump 34 Percent Versus December
The Greater Sacramento real estate market bounced back in dramatic fashion during the month of January as new pending sales jumped 34 percent when compared to December figures. The new sales reported also topped January of 2019 numbers by 11 percent — a month that launched the first quarter of last year on a very hot pace. This market information was presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
Fortunately, 2,207 new re-sale listings also came to market in January across the four-county area. This marked a 78 percent increase versus a dormant December yet still fell 9 percent shy of January 2019 when supply was already viewed as quite low. Regardless, the region still holds less than 2 months of available inventory based upon current buyer demand.
The region’s average price for closed sales in January rested at $455,000, a respectable 5.5 percent higher than one year ago. This does reflect a typical seasonal adjustment though, as the average has slid slightly and slowly since reaching $484,000 in June, during peak summer selling season.
“Sales activity in the move-up and upper-end price points typically softens over the winter months and places downward pressure on median and average sales prices. Moderate, monthly increases are expected to resume soon,” states Pat Shea, president of Lyon Real Estate.
The entry level — properties below $400,000 — remains in a very precarious space with 47 percent fewer properties in standing inventory compared to last January. The rate of new sales each month remains in lock step with the number of new listings entering the market.
“This condition extremely limits opportunities for first-time buyers and also poses potential market-wide risk. Entry-level and move-up buyers are highly critical components in the entire housing ecosystem,” says Shea.
Currently, the move-up range of $400,000 to $750,000 remains very busy with a 24 percent increase in new sales reported in January compared to last year and adequate inventory available for now. Sales in the upper-end also continue to churn as new pending sales posted for January were up 33 percent year over year. Inventory is more favorable in the upper-end as well, with more than 4 months of supply available based upon the current rate of sales.
“Right now is truly the best time to place your home on the market as inventory remains seasonally low while buyer activity has returned with a vengeance,” Shea adds. “You still want to price reasonably, prepare for excellent showing condition, and select a very good agent in order to negotiate your highest and best contract. The stability in our prices, a typical influx of new inventory as spring draws near, record-low mortgage interest rates and solid employment metrics will keep the market very busy and highly competitive once again, throughout all of 2020.”
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.