Region’s Home Sales Maintain Scorching Pace
The average sales price for July marks a record $529,000.
On July 31, 2,459 residential properties were active and available for sale throughout the four-county greater Sacramento region, marking a staggering 47 percent decrease in standing inventory compared to last year at this time.
“Buyers remain hyperactive in our market post the pandemic-induced interruption experienced mid-March through mid-May,” says Pat Shea, president of Lyon Real Estate. “There is every reason to believe housing sales will maintain this run as long as new listings continue to surface.”
During July, 2,883 properties closed escrow. This reflected a 13 percent lift over June sales and 6 percent more than those recorded in July of 2019. Total year-to-date closed units have rebounded over the past few months and are now only 8 percent shy of last year at this time. This market information is presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
The hyper-elevated rate of new open escrows, or pending sales, support expectations that closed sales will remain solid in the coming months. New escrows opened in July were 4 percent more than an already over-achieving June and stood a remarkable 24 percent higher than July of 2019. The average closed sales price set a new record at $529,000 for the month of July. This marks a 7 percent jump compared to June and a 10 percent increase year-over-year.
Sellers that closed escrow in the second quarter averaged 98 percent of their original list price and were on the market an average of 34 days before accepting a contract. When combining all price points across the entire region, there remains less than one month’s supply of inventory based upon the current rate of sales. Balanced markets are widely considered to have approximately four months of supply.
“More homes must come on the market over the next few months for sales to remain steady,” says Shea. “All of the news surrounding Northern California and our local economy is ultra-encouraging with rebounding employment and super low mortgage interest rates. Thousands of homeowners have purchased or refinanced homes throughout our market at mortgage rates in and around 3 percent. People are flocking to greater Sacramento for the quality of life and fabulous home values. Our market has surely adjusted to a new normal with lower levels of inventory most likely a constant for the foreseeable future. Most are expected to remain in place for longer time frames. However, there still remains plenty of opportunity for prospective buyers and sellers alike.”
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.