Housing Inventory Slowly Bouncing Back
January through February numbers show new listings on the rise.
More sellers are steadily entering the Greater Sacramento resale housing market after standing inventory hit a precariously low 1,108 properties available for sale at the end of 2021. Fortunately, new listings entering the market during the month of February jumped 9 percent vs. January and 13 percent more than those posted during the month of February last year.
Buyers, however, have not let up at all and continue to snap up homes at a very aggressive pace. Last month, 2,064 homes were placed under contract, a healthy 25 percent increase versus January. Thanks to the growth in new listings, pending sales are currently tracking 21 percent higher at mid-March versus mid-February. New pending sales year to date at mid-March are nearly even with last year at this time. The current trends in these key metrics all reflect that 2022 is well on path to compete with the extraordinary resale housing totals achieved last year.
“Greater Sacramento quickly became the ‘place to be’ in Northern California once the COVID pandemic launched the ‘get more space’ and ‘work from home’ movements,” says Pat Shea, president and CEO of Lyon Real Estate. “The Omicron surge did little to obstruct our red-hot sales trends due to solid employment numbers, exceptionally favorable mortgage interest rates, excellent values in our housing stock and continued migration to our region.”
The number of closed sales in February was up 2 percent versus January yet down 5 percent compared to February of last year. At mid-March, total closings year to date are tracking 8 percent below last year at this time.
The average sales price across the region for the month of February rested at $651,000. That number was a massive 16 percent greater than last year at this time. The past 3-month average sales price of $632,000 reflected a 14 percent increase year over year. This indicates that the price appreciation in our market is sustainable and most likely will continue to climb. Homes that closed escrow in February received an average of 102 percent of original list price and were on the market an average of 20 days.
According to Shea, “the slightly slower start to closed unit numbers is surely a byproduct of lower inventory available for purchase in the months of December and January. That gap will likely close over the next few months though, due to the rising inventory and persistent buyer demand. The huge average sales price jumps, super low number of days on the market, and the fact that most homes are selling at or above list price all reflect that the Greater Sacramento housing market remains quite hot with no signs of a cool down in sight.”
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.