Luxury Home Sales Break Another Record
Closed sales in the third quarter up 87 percent versus 2019.
Greater Sacramento officially extended a multi-year trend of annual growth in luxury home sales throughout 2020 by already posting a record 1,065 closed transactions year to date. Total luxury sales through the third quarter alone of this year have bested last year’s final tally by 3 percent. All market information presented by Lyon Real Estate is based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
Sold and closed sales for the third quarter rebounded with a vengeance post-pandemic in the second quarter as 597 properties were recorded. That marked an 87 percent improvement over the third quarter of 2019 and propelled the new annual record. The combined average sales price for July, August and September was $1,219,000, nearly even with the same period last year.
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. This year approximately 5 percent of all homes sales have fallen into that price bracket; 85 percent of those transactions have fallen in the $900,000 and $1,500,000 range.
The average price per square foot for the quarter was $321. Sellers received an average of 94 percent of their original list price, precisely the same as last year. The average time on the market however dropped considerably to 56 days, compared to 74 in third quarter of 2019.
New open escrows during the third quarter of 2020 guarantee that current market momentum will continue as 588 luxury properties were placed under contract, double the number posted last year during the same time frame.
Some market observers have expressed concern that our active and available luxury home listing inventory of 419 properties is currently 23 percent lower than September 30 of last year. That number actually is indeed quite low based upon the persistent rate of sales. A balanced market typically is considered to have four to six months of supply and ours currently remains with only two.
“Good economic news continues to surround Northern California and home buyer confidence is very high in spite of the tumultuous circumstances the year has brought forth,” says Pat Shea, president of Lyon Real Estate. “The entry-level and move-up price points remain exceptionally vibrant throughout the greater Sacramento for this time of year. Elevated migration from the San Francisco Bay Area and our exceptional home values continue to fuel the luxury market. Higher inventory under these conditions is a good thing as buyers have more choices and are acting swiftly. Look for a strong finish to 2020 and the prospect of this being the new normal for luxury home sales.”
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.