Housing Inventory Bounces Off Rock Bottom
February through Mid-March numbers show new listings on the rise.
More sellers are finally entering the Greater Sacramento resale housing market after standing inventory hit a historical low of 1,065 properties available for sale back in January. Fortunately, new listings entering the market during the month of February jumped 4 percent vs. January and thus far at mid-March, are 6 percent greater than those tracked last month by Valentine’s Day.
However, buyers have not let up at all and continue to snap up homes at a rapid pace. Last month, 2,032 homes were placed under contract, a healthy 13 percent increase versus January. Thanks to the growth in new listings, pending sales are currently tracking 25 percent higher at mid-March versus mid-February. This market information was presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
“Last year at this time, the pandemic was just starting what would be a 2-to-3-month significant disruption in the housing market both locally and across the nation,” says Pat Shea, president of Lyon Real Estate. “Yet, solid employment numbers for the typical home buying and selling public, historically low mortgage interest rates, excellent values in our housing stock and elevated migration to our region led to record sales and much higher home prices by year-end. You can most certainly expect those trends to continue for the foreseeable future.”
The number of closed sales in January and February were relatively even month over month and compared to last year as well. Total closed escrows for the month of February alone were actually 2 percent higher than those of last year. At mid-March, total closings year to date are tracking a mere 1 percent above last year at this time. That gap will jump dramatically over the next few months, however, due to the rising inventory and relentless buyer demand.
The average sales price across the region for the month of February rested at $561,000. That number was a massive 19 percent greater than last year at this time. The past 3-month average sales price of $553,000 was also a 19 percent increase year over year. This indicates that the price appreciation our market is experiencing will be sustained and most likely will continue to swiftly rise.
Homes that closed escrow in February received an average of 101 percent of original list price and were on the market an average of 23 days. According to Shea, “the huge average sales price jumps, super low number of days on the market, most homes selling at or above list price, all reflect that the Greater Sacramento housing market is blistering with no cool down in sight.”
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.