Are Home Sales Cooling?
Closed sales year-to-date up 25 percent versus 2020.
Good news appeared last month for local housing enthusiasts throughout the greater Sacramento area as 1,528 home were left available in standing inventory at the end of May. That was the highest level posted since November of last year and also represented a 9 percent jump when compared to April 30. However, unrelenting buyer demand offered a moment of clarity as there still remained a meager 15 days of housing supply based upon the current rate of sales.
A burst of new listings arriving to market provided a much-needed lift over the past three months and marked a 9 percent increase over the same period in 2020. New listings during the month of May fell 7 percent short of April numbers. That left the year-to-date total nearly even with that of 2020.
Buyers indeed remained persistent during the month of May as the new open escrows posted were 8 percent higher than April and 14 percent higher than May of last year. The year-to-date total for new open escrows is currently more than 20 percent higher than that of 2020.
The average sales price for the month of May registered at $643,000 with the median at $565,000. Both were new records once again and approximately 5 percent above the same metrics in April. The running three-month average sales price is currently 27 percent higher than last year for the same period and the median is 24 percent higher. Homes that closed escrow during the month of May were on the market a record low of 12 days on average. Due to multiple offers on most listings, sellers averaged 104 percent of their original list, a repeat of April’s performance.
Actual closed sales year-to-date at month end are nearly 25 percent higher than those recognized on May 31, 2020.
“Closed sales will even out compared to 2020 later in the year when typical seasonality takes form,” says Pat Shea, president of Lyon Real Estate. “Remember last year there was a severe pandemic-infused interruption from March through May with an epic correction by year end.
“When a pot of water falls shy of boiling, it remains unmistakably hot,” says Shea. “Presently, homes are still flying off the shelves and multiple offers are more common than not. The tepid number of new listings entering the market and standing inventory levels do remain somewhat ominous. Vastly improved employment figures and resiliently low mortgage rates continue to inspire and empower buyers from both within our market and afar. The greater Sacramento housing market will remain hot this year regardless of subtle key metric fluctuations from month to month.”
This market information is presented by Lyon Real Estate courtesy of data provided by Trendgraphix Inc., a Sacramento based reporting company.
About Lyon Real Estate
Lyon Real Estate is the leading independent real estate brokerage company in Greater Sacramento (Sacramento Business Journal), and is proud to be homegrown, privately owned, and internationally known. Lyon has served the area for over 75 years. Last year, the company closed a total of 5,851 transactions and $2.86 billion in sales volume. Lyon Real Estate has over 800 agents in 17 offices located throughout the region. The company is a member of the Leading Real Estate Companies of the World®, the largest network of premier locally branded firms, as well as LeadingRE’s Luxury Portfolio International® program. In addition to its real estate services, Lyon Real Estate offers RELO Direct, a global relocation program. Since 2015, the Lyon Cares Foundation has contributed more than $865,000 to local nonprofits. For more information about Lyon Real Estate, click to GoLyon.com.
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.