The Local Housing Market is Still Quite Busy
The average sales price over the past 3 months was 26% higher than last year.
On July 31, 2,255 residential properties were active and available for sale throughout the 4-county Greater Sacramento region, the highest number since last year at this time. This remains a historically low number with less than one month of supply available based upon the current rate of sales. The market will need to reach 2 to 3 months of supply before a true softening pattern can be confirmed.
“Buyers remain very active in our market in spite of some indications that the red-hot pace is easing,” says Pat Shea, president of Lyon Real Estate. “There is every reason to believe housing sales will keep churning as long as new listings continue to surface. It is paramount to consider the trends over multiple months rather than just one month to obtain the most accurate picture.”
During July, 2,473 properties closed escrow, a 13 percent fall off from June. Closed sales over the last 3 months however were 9 percent higher than those of the same period in 2020. The steady rate of new open escrows or pending sales, only down 5 percent year over year, support expectations that closed sales will remain very solid in the coming months. New listings entering the market over the past 3 months were only 5 percent higher than those of 2020, affirming the market remains tight.
Despite a slight dip for the month of July, the average sales price for the region over the past 3 months landed at $642,000. This was a remarkable 26 percent jump compared to last year. Sellers that closed escrow over the past 3 months averaged 104 percent of their original list price versus 98 percent last year. Homes that closed escrow were on the market an average of 13 days versus 31 last year.
“More homes must come on the market over the next few months for sales to remain steady,” says Shea. “The market however, has yet to tell a compelling story that things are dramatically changing. Month to date on August 11 versus July 11, new listings are down 21 percent with new pending sales up a telling 38 percent.”
The upper-end, $750,00 and above, remains a major indicator with 52 percent more new pending sales posted over the past 3 months compared to last year. As of August 11,, the price point also reflects a 26 percent jump versus month to date on July 11.
“We are likely to see a typical seasonal slowdown come fall but a major reversal of fortunes is quite unlikely,” says Shea. “All of the news surrounding Northern California and our local economy is ultra-encouraging with steadily improving employment numbers and super low mortgage interest rates. There still remains plenty of runway in 2021 for prospective buyers and sellers alike to achieve their housing goals.”
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.