Luxury Home Sales Are Doing Just Fine
Year-to-date sales figures chart path for another solid year.
Second-quarter luxury home sales throughout the Greater Sacramento region fared quite well as 622 new pending sales were placed under contract over the past three months. That number reflected a 24 percent jump versus the first quarter of this year and an 8 percent increase compared to sales posted in the second quarter of 2021. This persistent sales activity suggests that the luxury market segment may be less sensitive to mortgage interest rate increases at least for the time being. New pending sale totals at mid-year are currently 11 percent higher than last year at this time.
Luxury Portfolio International recognizes home sales above $1,000,000 throughout the Greater Sacramento region as properties that map most accurately toward consumer expectations regarding luxury real estate. Approximately 9 percent of the homes sold year to date fall into the luxury price category.
Second-quarter closed luxury sales were 10 percent higher compared to the same period last year and are currently 17 percent greater year to date. This activity suggests that absent a significant change of economic fortunes, Greater Sacramento will likely surpass last year’s record-breaking luxury home sales totals. The average sales price for the second quarter rested at $1,427,000, a mild 2 percent increase versus last year. The luxury market is currently considered to be more balanced for both buyers and sellers with approximately three months of supply available at the current rate of sales. Luxury homes that successfully closed escrow in the second quarter did so on an average of 21 days. This is still considered quite rapid by historical standards.
“A remarkable amount of activity and opportunity remains for luxury home buyers and sellers throughout Greater Sacramento regardless of the recent uptick in mortgage interest rates,” says Pat Shea, president of Lyon Real Estate. “The next few months do bear watching though. Closed sales in June were down 23 percent and new pending sales down 30 percent versus May. Last year third and fourth quarter sales were both softer than second quarter figures and therefore, you can certainly expect that pattern to repeat. A certain amount of cooling from the ‘red-hot’ 2021 was expected and is now upon us. However, barring any seismic jolts to the Northern California economy, it should be another very strong year for home sales 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.