Good News and Bad News for Home Buyers
Inventory jumps 24 percent versus April.
Good news appeared last month for local re-sale home buyers throughout Greater Sacramento as 2,618 homes were left available in standing inventory at the end of May. That was the highest level posted since June of 2020 and also represented a 24 percent jump when compared to April 30. Steady buyer demand, however, tempered any thoughts of panic as there still remained slightly more than one month of housing supply based upon the current rate of sales.
New listings arriving to market provided a nice lift for home buyers over the past three months but still fell 2 percent shy of those posted over the same period in 2021. New listings posted during the month of May alone fell 2 percent short of April’s and now at mid-June, 15 percent fewer new offerings have hit the market versus mid-May.
Buyer activity bounced back a bit during the month of May as the new open escrows posted were 6 percent higher than April’s though 14 percent lower than the red-hot May of last year. Due to fewer open escrows in the past few months however, closed sales landed 10 percent fewer than April and 16 percent lower than May of 2021.
The average sales price for the month of May registered at $717,000 with the median at $625,000. Both were new records once again with the average sales price a 3 percent increase and the median a 1 percent bump versus April. The running three-month average for sales price and the median are both approximately 14 percent higher than last year for the same period.
Homes that closed escrow during the month of May were on the market an average of only 13 days versus the record low of 12 last May. Due to multiple offer situations still occurring on many properties, sellers averaged 103 percent of their original list price, down only 1 percent versus May of 2021.
“New pending sales and actual closed sales year-to-date at mid-June are just 10 percent lower than those recognized last year at this time during what was arguably the hottest housing market in history,” says Pat Shea, CEO of Lyon Real Estate.
“The good news for home buyers is that there is finally a little more inventory available to consider,” says Shea. “The bad news is that home prices continue to rise and now interest rates are creeping up, both making their purchases more costly. Even though the impacts of inflation are pushing cool breezes through the market, standing inventory and the number of new listings entering the market remain limited. The low number of days on the market at 13 for closed sales combined with sellers receiving an average of 103 percent of original list price both indicate the market remains vibrant. The truth is that with respect to the Greater Sacramento housing market, there remains a great deal of opportunity for both sellers and buyers alike.”
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.