Luxury Home Sales Continue to Soar
Annual closed sales produce another record-smashing performance.
Greater Sacramento area luxury home sales in 2020 continued to churn at an accelerated rate and are now clearly a sustainable segment of the region’s overall housing market. The final year-end total of 1,525 closed transactions surpassed the previous high celebrated in 2019 by 47 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 of 2020 alone, 507 closed luxury home sales were recorded throughout the region. This figure marked an extraordinary 115 percent jump over the same period last year and was surely fueled by the pandemic escalated migration from the San Francisco Bay area and persistently strong sales in the feeder, move-up price point. New pending sales in the luxury space finished 109 percent higher in December versus the prior year and signal that market momentum will indeed maintain a roaring pace moving into 2021.
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. Nearly 6 percent of the total home sales throughout the region occurred in the luxury space throughout 2020. Nearly 84 percent of the 2020 luxury transactions however, took place in the tighter $900,000 to $1,500,000 price range and only 160 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 43 days from their original list date, down from 81 last year. They also received an average 96 percent of their original list price, 3 percent higher than last year. The average sales price for the quarter was $1,275,000, a 2 percent bump year over year. The average price per square foot came in at $332 for properties that closed escrow during the fourth quarter.
There were approximately two months of inventory available on December 31 based upon the current rate of closed sales. This places luxury in firmly in the “seller’s market” arena as 4 to 6 months is typically viewed as a more balanced market.
Pat Shea, president of Lyon Real Estate, states that “the Greater Sacramento region has a new and improved appeal for people that live, work and play in the luxury price range. More space in both the home and lot size have become much higher priorities for those leaving high population density markets. Pandemic infused migration from the San Francisco to San Jose corridor has increased significantly with the shift to more remote work and learning opportunities along with the expectation that they will remain long-term. Mortgage interest rates below 3 percent and the jump in home equity over the past 3 years continues to inspire move-up buyers right within our region. There is every reason to believe that in 2021 and beyond, luxury hone sales will represent a compelling segment of overall home sales throughout Great Sacramento.”
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.