Luxury Home Sales Still the Rage
First quarter numbers chart path for another record-setting year.
Last year, Greater Sacramento continued a multi-year trend of algebraic growth in luxury home sales with 1,525 closed transactions. Now once again, first quarter sales throughout the region flourished as 552 new pending sales were placed under contract. That number was more than double the new sales posted for the first quarter of 2020 and signals that yet another record-setting year for sales is imminent. Last year at this time, sales for the first quarter were viewed as quite strong by historical standards until the pandemic interruption started to surface in early March. The market ultimately rallied with a vengeance in the second half of the 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. Approximately 6 percent of the total home sales throughout the region occurred in the luxury space throughout 2020. Nearly 85 percent of luxury transactions across the Greater Sacramento region appear in the $900,000 to $1,500,000 price range.
First quarter closed luxury sales were also more than double year-over-year, which practically guarantees that the region will once again surpass the prior year’s annual total. The better start to 2021 is largely due to much stronger open escrow activity at the end of last year during the protracted and celebrated market rebound. The average sales price for the first quarter rested at $1,261,000, a healthy 6 percent higher than last year. The luxury market is currently considered to be in “sellers’ favor” with less than two months of supply available at the current rate of sales. This is rare for luxury priced inventory in most market areas and certainly new territory in the region.
“Luxury home buyers and sellers throughout Greater Sacramento remain empowered and inspired by a very strong stock market, elevated migration from the San Francisco Bay area, the long-term prospects for remote work and of course very attractive mortgage interest rates,” says Pat Shea, president of Lyon Real Estate. “Our region has larger homes, larger lots, less congestion and a fabulous quality of life. Buyers thoroughly enjoy the choices and home values presented in our market. Early April returns reflect that spring weather and continued good news around the pandemic trajectory have further fueled momentum and all market metrics point to another exciting year in the luxury space.”
All market information presented by Lyon Real Estate is based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
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.