Luxury Home Sales Maintain Super Hot Pace
Closed sales in the third quarter up 34 percent year over year.
The Greater Sacramento region continues to enjoy such a steady rate of luxury home sales, it is now reasonable to expect that elevated activity in this price point is most likely permanent. The 805 sold and closed sales in the third quarter alone marked a 34 percent increase versus those of 2020 and a 150 percent jump compared to the same quarter in pre-pandemic 2019. Closed escrows year-to-date are currently more than double those for the same time frame last year.
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. This year approximately 10 percent of all homes sales have fallen into that price bracket, a significant jump over prior years.
Sellers received an average of 99 percent of their original list price in the third quarter, besting 97 percent last year and 94 percent for the same period in 2019. The average time on the market for luxury-priced properties that closed escrow in the third quarter dropped considerably to 22 days, compared to 45 in the third quarter of last year. The combined average sales price for July, August and September was $1,282,000, which reflected a 5.4 percent increase over the same period last year.
New open escrows during the third quarter of 2021 pretty much guarantee that current market momentum will continue, as 687 luxury properties were placed under contract. That figure was 20 percent greater than the third quarter of last year and more than double the number posted in 2019. September new open escrows alone were 23 percent greater than those for September of 2020, signaling the fourth quarter will surely be off to a great start.
One potential market threat is the low number of active and available luxury home listings available for sale. On Sept. 30, only 406 properties were listed, 2 percent lower than last year, yet 25 percent lower than those of 2019. That number actually is somewhat scarce based upon the persistent rate of sales. A balanced market typically is considered to have 4 to 6 months of supply and present market metrics reflect that we are currently hovering at less than two.
“Even though new luxury-priced listings entering the market were 27 percent greater in the third quarter than those posted last year, they just cannot keep up with our persistent buyer demand,” says Pat Shea, CEO of Lyon Real Estate. “Positive economic news continues to surround Northern California and home buyer confidence remains very high in spite of the extended challenges our lingering pandemic has brought forth. You can expect strong sales for the remainder of 2021 and the prospect of an elevated number of luxury home sales being the new normal going forward.”
All market information presented by Lyon Real Estate is 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.