Luxury Home Sales Weather Second Quarter Storm
June new open escrows nearly double those posted last year.
Greater Sacramento luxury home sales experienced an unexpected and unprecedented market disturbance from approximately mid-March through mid-May of 2020 due to the rapid acceleration and severity of our worldwide pandemic. Shortly thereafter however, luxury home sales throughout our region stormed back with a vengeance. This market information is presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
New open escrows in the market segment were understandably weak during the month of April. The rebound commenced swiftly though, as 113 units were logged for May, matching the average monthly total posted during the second quarter of last year. Then an extraordinary 215 luxury home sales were placed under contract in June. This nearly doubled those posted for the same month in 2019 and laid the ground work for luxury sales to once again meet or exceed last year’s totals by year-end.
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 homes sold year to date fall into the luxury category.
The renewed momentum currently leaves the luxury market segment reflecting only 8 percent fewer closed homes than last year at this time. The rush of open escrows in May and June places the new transaction count at a remarkable 10 percent higher than last year and ensures that closed units will jump in the coming months.
Active and available luxury inventory currently rests with 435 properties on the market, a staggering 28 percent below last year at this time. Only 62 percent of those homes are available in the $900,000 — $1,500,000 price range where 85 percent of the luxury home sales typically take place in greater Sacramento. Based upon the rapid rate of new luxury escrows, that narrower market segment is left with a meager two months of available supply. Even in the luxury price range, this condition is widely viewed as an advantage to sellers.
“The many excellent reasons to purchase luxury homes in greater Sacramento have just been super charged,” says Pat Shea, president of Lyon Real Estate. “Fabulous quality of life, amazing home values, a promising local economy and mortgage rates dropping below the impossible. The current state of world affairs will further escalate migration from the San Francisco Bay area and other congested areas throughout the state. You can surely expect greater Sacramento luxury home sales to reach new heights year after 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.