Low Inventory Keeps Tight Squeeze on Resale Homes
December new listings fall off 32 percent versus November.
The greater Sacramento area was left with a meager 1,108 homes active and available for sale in the four-county area on Dec. 31, 2021. This reflected a precipitous 27 percent drop from November and an 8 percent fall from the scarce supply available on the market at the end of 2020. It also marked a 44 percent shortfall from the before the pandemic, in December of 2019.
The lack of new listings entering the market in the fourth quarter presented a challenge and was a significant 15 percent fewer than those of last year. More importantly, December’s new listings fell 32 percent short of November’s and just could not keep pace with current buyer demand. Specifically, at year end there was approximately 15 days of resale housing supply available based upon the current rate of sales.
Limited standing inventory and diminished new listings led to fourth quarter closed sales falling 12 percent below those of 2020. Regardless, the region still wrapped up another record-setting performance with approximately 27,930 closed home sales for the year.
“Inventory typically declines at year end due to holiday and weather-related seasonality,” says Pat Shea, CEO of Lyon Real Estate. “This however, is uncharted territory. Our market, once again, remains in a precarious place heading into 2022 as resale housing supply has reached its lowest mark in modern history.”
New open escrows, which typically signal market momentum, emphasized the current inflection point. Although new opens were only 6 percent lower for the fourth quarter compared to 2020, December numbers alone reflected a 25 percent fall off from the same month last year.
The average sales price for homes closed throughout the region continued an aggressive multi-year climb and hit a new market high of $617,000 for the fourth quarter. That number reflected a 13 percent increase year-over-year. The median of $555,000 finished 14 percent higher for the same time frame. The average price and median price for the fourth quarter were both 31 percent higher than those of 2019.
Homes that closed escrow in the fourth quarter were on the market an average of 21 days, and sellers averaged 100 percent of their original list price. Both metrics were identical to the fourth quarter of 2020. The average price per square foot was $326.53, 19 percent higher than last year.
“Although Greater Sacramento is not forecasted as one of the hottest housing markets heading into 2022 by many national analysts, that is largely due to the shortage of both resale and new construction supply. The region remains in high demand and is still very affordable compared to other major population centers in California,” says Shea. “Continued migration from the congested coastal areas, a solid job market for the home-buying and selling public and very attractive mortgage interest rates will continue to fuel red-hot buyer demand in 2022. These conditions scream seller’s market and present the perfect opportunity for existing property owners to find their dream home, dream location and perhaps both.”
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). We are 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 6,039 transactions and $3.39 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 $1,017,900 to local nonprofits.
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.