Home Sales Soften Yet Remain Quite Strong
September new open escrows down only 3 percent versus 2020.
Greater Sacramento will most likely see a more typical seasonal softening of resale homes as we approach year-end. The 2,638 new open escrows reported in September were nearly even with those of August, yet marked a 3 percent decrease compared to September of last year. New open escrows for the entire third quarter also reflected a 10 percent decrease versus those of 2020 when a boom followed the severe pandemic-influenced disruption from March through May of last year.
The rate of new sales actually remained quite strong based upon historical standards and still left the market with a paltry one month of resale housing supply available at month-end. For a pre-pandemic comparison, there were more than 2 months of inventory available based upon the rate of sales in September of 2019. New listings entering the market in the third quarter were down 14 percent compared to last year and this shortfall has kept the market tight.
The lengthy market frenzy has also maintained an extraordinary upward pressure on prices across the region. The average closed sales price of $630,000 and median of $560,000 for the third quarter were both approximately 18 percent jumps over last year at this time. The number of closed escrows posted in the third quarter were down 14 percent versus last year but remain 6 percent higher year-to-date, compared to last year at this time. Homes that closed escrow in the third quarter were on the market an average of 16 days versus 31 last year and received approximately 102 percent of original list price versus 99.
All price points continue to remain hyper active at this time including the upper-end market — homes priced above $750,000. While the inventory level ended September at 14 percent higher than last year, 1,410 new open sales for the quarter were a notable 32 percent greater year over year. Upper-end sold and closed properties for the entire third quarter totaled 1,543 — up 41 percent versus 2020. The persistent momentum in new open escrows should continue to produce elevated closed sale results in the upper-end over the coming months.
“The resilient buyer appetite for excellent home values and quality of life offered throughout the Greater Sacramento region clearly remains unrestrained,” says Pat Shea, CEO of Lyon Real Estate. “From a historical perspective, every aspect of our housing market continues to reflect that even with a mild cooling, there is still a great deal of runway left for the extended market sprint we have experienced. Based upon the current rate of new open escrows and limited number of new listings entering the market, there remains approximately 1 month of available inventory. A balanced market is typically considered 4 to 6 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 $1,000,000 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.