Luxury Home Sales See Epic Second Quarter Boom
Closed sales mid-year are three times that of 2020.
First quarter luxury home sales throughout the Greater Sacramento 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. Remarkably, this unprecedented momentum persisted during the months of April though June as 851 properties moved into escrow. Consequently, there are now three times the number of luxury priced closed sales posted at mid-year compared to that of 2020.
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 10 percent of all homes sold year to date fall into that luxury price category. Digging a little further, 80 percent of the luxury sales fell into the $900,000 to $1.5 million dollar price range.
Active and available luxury inventory currently rests with 366 properties on the market, 21 percent below last year at this time. This is approximately one month of supply based upon the relentless rate of sales. Only 60 percent of those homes are available in the magic, $900,000 — $1,500,000 price range. This condition is widely viewed as a significant advantage for sellers.
Even with all of the frenetic activity, the luxury price range has seen a mere 7 percent lift in the average sales price and a 5 percent bump in the median price compared to last year at this time. These metrics are moderate compared to those of other price points throughout the region year over year.
“The pandemic has trained a bright light on the many excellent reasons to purchase luxury homes in Greater Sacramento,” says Pat Shea, president of Lyon Real Estate. “Our region offers larger homes and larger lots with a fabulous quality of life, a promising local economy and mortgage rates hovering below the impossible. The ever-evolving work-from-home movement and business expansion in our region will further support migration from the San Francisco Bay Area and other congested areas throughout the state. Greater Sacramento luxury home sales will shatter records again in 2021. The only question that remains is by how much?”
This market information is presented by Lyon Real Estate based upon 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.
Category Real Estate
Elizabeth Penney is a content writer for Lyon Real Estate and the Lyon Local blog. A Sacramento native with a marketing background, she shares her insider knowledge on restaurants, attractions and outdoor activities throughout the greater Sacramento area and beyond.