Buyers Seeking More Homes for the Holidays
November new pending sales are up 3 percent versus last year.
The number of active and available homes for sale throughout Greater Sacramento declined an aggressive 29 percent since October and it currently remains 3 percent below last year at this time. Relentless market demand, measured by the rate of new pending sales, left the region with approximately three weeks of remaining home supply on December 1.
A total of 2,272 resale homes went under contract as pending sales, while 2,195 were posted as sold and closed across the entire region for the month of November. These sales categories reflected 6 percent and 10 percent drops respectively compared to October, which is typical for the season. New pending sales however, continued to flow in and consequently were up 3 percent versus a very busy last year at this time. More homes available for sale on the market surely would have led to even more new open sales in November.
According to Pat Shea, president of Lyon Real Estate, “Resale buyer activity remains very persistent and much more aggressive than what we are accustomed to when considering typical year-end histories. Unfortunately, new listings entering the market were down 10 percent compared to last November. Buyer demand remains red hot, thus the overall lack of homes for sale will likely hinder sales opportunities over the next few months.”
The average home sales price of $623,000 and median sales price of $560,000 for the region in November both reflect an approximate 15 percent increase compared to this time last year. A steady and consistent pattern of appreciation over the past few years implies that prices have clearly established a sustainable “new normal” with an extended stay very likely at these levels. The region has experienced a steady growth in home prices since the pre-recession peak in June of 2006 at $472,000 followed by the dramatic market correction that eventually ended in 2012.
All price points experienced the same result of lower inventory with steady new open escrow and closed sale figures. Homes in the move-up range of $400,000 to $750,000 enjoyed a 14 percent increase in new pending sales versus November of 2020 with homes above $750,000 seeing an extraordinary 54 percent leap. The entry-level homes under $400,000 suffered the greatest inventory fall-off year over year, ending the month 42 percent lower than last November.
“The Greater Sacramento economy remains on its very best run ever,” says Shea. “It certainly seems cliché by now, but continuing San Francisco Bay Area migration, reasonable employment numbers, historically low mortgage interest rates, the stock market run and expansive growth in local development are all encouraging buyers to stay the course. Anyone thinking about selling in 2022 should be watching and taking steps as well. Thoughts of inflation and rising rates continue and are likely to become a reality in the new year.”
This market information was 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 $1,017,000 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.