No Winter Break for Greater Sacramento Home Sales
January new pending sales jump 10 percent versus December.
The Greater Sacramento real estate market kept rolling during the month of January as new pending sales jumped 10 percent when compared to December figures. The new sales reported also topped January of 2020 numbers by 8 percent — a month that launched the first quarter of last year on a very hot pace prior to the pandemic interruption. This market information was presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
Fortunately, 1,852 new resale listings also came to market in January across the four-county area. This marked an 18 percent increase versus a dormant December yet fell 22 percent shy of January 2020 when supply was already viewed as quite low. Regardless, the region still holds well less than one month of available inventory based upon current buyer demand.
The region’s average price for closed sales in January rested at $552,000, an astounding 20 percent higher than one year ago. This is not an anomaly as the price metric has averaged $549,000 over the past three months, indicating prices are likely to push up further in spring.
“Sales activity in the move-up and upper-end price points typically softens over the winter months and the exact opposite has occurred this year. Persistent sales, low inventory and upward pressure on prices will be the story in 2021,” states Pat Shea, president of Lyon Real Estate.
The entry-level properties — those below $400,000 — remain in a very precarious space with 73 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 price range of $400,000 to $750,000 remains on fire with a 64 percent increase in new sales reported in January compared to last year. The market segment was left with only a half month supply of inventory available for now. Sales in the upper-end also continue to churn as both closed transactions and new pending sales posted for January were more than double year over year. Inventory is slightly more favorable in the upper-end though, with nearly two months of supply available based upon the current rate of sales.
“Even though it seems like a fierce battle to make a first-time purchase or move up to your dream home, just do it and do it now. The market conditions will not change anytime soon and prices and interest rates are certain to rise. Waiting will either cause you to get less of a home than you wanted or perhaps push you out of the opportunity altogether. Soon-to-be-home sellers should also get on the market now, as inventory remains historically low and buyer activity remains here with a vengeance,” Shea adds. “You still want to price reasonably, prepare for excellent showing conditions, and select a very good agent in order to negotiate your highest and best contract. Real estate transactions are very complicated regardless of how favorable the selling conditions are.”
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.