Luxury Home Sale Market Expands
2021 annual closed sales produce another record-smashing performance.
Greater Sacramento area Luxury Home Sales in 2021 continued to move at a feverish pace and are now patently an expanded and sustainable segment of the region’s overall housing market. The final year-end total of 2,871 closed transactions exceeded the previous high celebrated just last year by 87 percent. Luxury priced sales also topped pre-pandemic 2018 and 2019 totals each by approximately 175 percent.
During the fourth quarter alone, 654 closed luxury home sales were recorded throughout the region. This figure marked a notable 27 percent jump over the same period last year and signals that prolonged momentum can most likely be expected. It is important to note that sales numbers for the same period in 2020 were already fueled by pandemic escalated migration from the San Francisco Bay area and persistently strong sales in the local move-up price point. Thus, the 2021 results truly reveal a compelling narrative.
Luxury Portfolio International (LPI), for calendar year 2021, recognized home sales above $900,000 in the Greater Sacramento region as properties that mapped most accurately with consumer expectations regarding luxury real estate. More than 10 percent of the total home sales throughout the region occurred in the luxury space throughout 2021, this was nearly double that of previous years. The multi-year expansion of sales prompted LPI to elevate the luxury price range to $1,000,000 and above for 2022 and beyond.
New pending sales in the luxury space finished 34 percent higher in the fourth quarter and new listings entering the market were 8 percent higher than last year. Both metrics support confidence in the likelihood of continued market momentum moving into 2022. There was approximately one month of inventory available on December 31 based upon the current rate of closed sales. This places luxury firmly in the “seller’s market” arena, as 4 to 6 months is typically viewed as a more balanced market.
Luxury homes that closed during the fourth quarter were on the market an average of 29 days from their original list date, down from 44 last year. They also received an average 99 percent of their original list price, 3 percent higher than last year. The average sales price for the quarter was $1,247,000, a 2 percent drop year over year. The average price per square foot however, came in at $377, a 13 percent increase over the same period.
Pat Shea, CEO of Lyon Real Estate, states that “the Greater Sacramento region has a magnetic appeal for people who live, work and play in the luxury price range. More space in both the home and lot size have become much higher priorities for those leaving high population density markets.” He also cites that “according to the study published by real estate software company Stessa, the Sacramento metro area had a 107.7 percent increase in six-figure jobs from 2015 to 2020. Sacramento ranks No. 13 on a list of the nation’s large metros with the most growth in high-paying jobs over the last half decade. There is every reason to believe that in 2022 and beyond, luxury home sales will represent a growing segment of overall home sales throughout Great Sacramento.”
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.
Category Real Estate
Elizabeth Penney is a content writer for Lyon Real Estate and the Lyon Local blog. A Sacramento native with a marketing background, she shares her insider knowledge on restaurants, attractions and outdoor activities throughout the greater Sacramento area and beyond.