Area Home Buyers Not Letting Up Quite Yet
August new open escrows jump 11 percent versus July.
Year-to-date closed home sales across the Greater Sacramento region were 6 percent higher at August 31 compared to last year at this time. That metric seems quite surprising considering the year-long battle with low inventory in all neighborhoods and at all price points.
Relentless buyer persistence was on full display once again during the month of August as 2,762 resale properties were placed under contract throughout the market area. That new open escrow number reflected an 11 percent lift over July’s total and also represented the highest number posted in a given month since August of last year.
On the other side of the spectrum, resale housing supply rested at 2,265 properties available for sale on August 31. That figure was nearly even with August of last year, yet less than half of what was available for the same month in both 2019 and 2018. Considering the rapid rate of new sales, there is currently less than one month of supply active on the market.
“The move-up and upper-end price points remain remarkably strong and continue to reveal steadfast buyer confidence,” says Pat Shea, CEO of Lyon Real Estate. He added that “the $400,000 to $750,000 price range saw a 7 percent increase in new open escrows last month versus August of 2020. Above $750,000, there was an extraordinary 42 percent jump versus last year continuing what is now a 6-month surge of very high sales activity.”
Due to the restrained supply and tenacious buyer demand, upward pressure on price continues as evident through a few additional metrics. The average closed sale price of $641,000 for the past 3 months and median price of $567,000 both represent new records. The average and median sales prices over the past three months both reflect a 22 percent increase versus last year at this time.
“August has often been a softer sales month due to last hurrah summer vacations and back-to-school priorities,” says Shea. “Similar to last year though, the pandemic continues to elevate a passion for home ownership in the Greater Sacramento region and perhaps will extend our peak selling season. Current sales trends suggest that eager buyers seeking the excellent home values in our market area are not quite ready to let up. And of course, inexplicably low mortgage rates continue to aid their cause. Even if the pace starts to slow a bit, you can surely expect very strong sales numbers to carry on in the coming months.”
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 $780,000 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.