Another Warm Winter for Resale Homes
January New Pending Sales Jump 11 % Versus December.
The Greater Sacramento resale housing market hopped right back on track during the month of January as new pending sales saw an 11 percent lift versus those posted for December. The new sales reported were also nearly even with January of 2021. That month launched last year off toward what would ultimately become a record-setting performance.
Fortunately, 1,804 new resale listings also came to market in January across the four-county area. This marked a 33 percent increase versus an anemic December yet fell 10 percent shy of January 2021, when supply was already viewed as quite low. Regardless, the region still holds less than 1 month of available inventory based upon current buyer demand.
The region’s average price for closed sales in January rested at $629,000, a remarkable 15 percent higher than one year ago. More notably, the price metric has averaged $624,000 over the past three months, indicating prices are stable and likely to rise further come spring.
“Sales activity in the move-up and upper-end price points typically softens over the winter months and the exact opposite has occurred this year. Steady sales, low inventory and upward pressure on prices will surely continue to be the story this year,” states Pat Shea, president and CEO of Lyon Real Estate.
The entry level — properties below $500,000 — remains the tightest with 13 percent fewer properties in standing inventory compared to last January. The rate of new sales each month maps very closely to the number of new listings entering the market.
“More opportunities for first-time buyers are mission critical for a healthy market. Entry-level and move-up buyers are the driving force for our entire housing ecosystem,” says Shea.
Currently, the move-up price range of $500,000 to $999,999 remains on fire with a 40 percent increase in new sales reported in January compared to last year. Fortunately, new listings entering the market were up 36 percent versus December and 23 percent compared to last January. Regardless, the market segment was left once again with less than one month of supply at month end.
Sales in the upper-end, $1 million and above, also sprang back to life as new pending sales jumped 45 percent compared to December and 15 percent versus last year at this time. Inventory is somewhat more favorable in the upper-end though, with nearly two months of supply available based upon the current rate of sales.
“It certainly feels like a fierce battle to make a first-time purchase or to move-up to your dream home, but just do it and do it now. The market conditions will not change anytime soon. Prices continue to climb and interest rates are now on the rise. Waiting will surely cause you to get less of a home than you wanted or perhaps push you out of the opportunity altogether. Soon-to-be home sellers should also get on the market now as inventory remains historically low and buyer activity is unrelenting,” Shea adds. “You still want to price reasonably, prepare for excellent showing condition, and select a very good agent in order to negotiate your highest and best contract. Real estate transactions are very complicated regardless of how favorable the selling conditions are.”
This market information was presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
*Due to the 33 percent increase in average sales price over the past 24 months, price points have been updated. Entry Level: >$499,999, Move Up: $500,000–$999,999, Upper End: $1,000,000+
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.