Luxury Home Sales Keep Rolling
First quarter numbers chart path for another solid year.
Last year, Greater Sacramento experienced another big leap in luxury home sales with a record-setting 2,871 closed transactions. Now once again, first quarter sales throughout the region have flourished as 514 new pending sales were placed under contract. That number was 34 percent higher than the new sales posted in the first quarter of 2021. This persistent sales activity, along with upward pressure on home prices market-wide, indicate that a higher annual total of luxury home sales will likely be the new normal.
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, which 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.
First quarter closed luxury sales were already 50 percent higher year over year which practically guarantees that we will once again surpass our prior year’s annual total. The average sales price for the first quarter rested at $1,430,000, a mild 3 percent increase versus last year. The luxury market is currently considered to be well in “sellers’ favor” with just over one month of supply available at the current rate of sales. This is rare for luxury priced inventory in most market areas and certainly a new phenomenon in this region.
“Luxury home buyers and sellers throughout Greater Sacramento remain empowered and inspired by a relatively stable stock market, strong local economy and continued migration from more expensive and high-density market areas. The long-term potential for remote employment has certainly supported sales momentum and the uptick in mortgage interest rates has yet to deter luxury buyers,” says Pat Shea, president and CEO of Lyon Real Estate. “Our region enjoys larger homes, larger lots, less congestion and a very appealing quality of life. Buyers have more choices and excellent home values all across Greater Sacramento, it should be another exciting year in the luxury space.”
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.