Housing Market Seeking Balance
Available inventory nearly double that of last year.
On July 31, 4,024 residential properties were active and available for sale throughout the four-county Greater Sacramento region, approximately 80 percent higher than last year at this time. The truth is that housing supply still remains at a very low number with slightly more than two months of supply available based upon the current rate of sales
“Buyers remain quite active in our market in spite of the significant bump in mortgage interest rates over the past few months,” says Pat Shea, CEO of Lyon Real Estate. “Home sales keep churning though the multitude of multiple offers and fervent bidding above list price are surely subsiding. It certainly appears that the market is seeking an equilibrium and healthy normal.”
During July, 1,743 properties closed escrow, a 20 percent fall off from June. Closed sales over the last 3 months combined were 23 percent lower than those of the same albeit “red-hot” period last year. The steady rate of new open escrows or pending sales over the past three months was also down 24 percent versus last year yet July opens were nearly identical to June. This is an early sign that some stability in the market may be forming.
Despite a slight dip for the month of July, the average sales price for the region over the past three months landed at $655,000. This was a 5 percent jump compared to last year. The median rested at $596,000, a 6 percent lift year over year. Sellers that closed escrow in July averaged 98 percent of their original list price and were on the market an average of 22 days. Both metrics were softer than last year but very good outcomes for sellers based upon historical standards. New listings entering the market in July were a notable 17 percent fewer than those of June, also indicating that there is no” fire-sale” in progress.
Inventory in the upper-end, $1,000,000 and above, is rising a little more quickly compared to other price points and currently sits with nearly four months of supply. July new pending sales in the price point were also nearly identical to those of June.
“Job market numbers continue to be positive and mortgage rates still fall far below historical averages,” says Shea. “The market is finding its footing but by and large, it remains in really good shape. The compelling story is that it was indeed overheated for an extended period of time and mortgage rate fluctuations have caused many to take pause and observe. If sellers price and prepare their homes wisely, odds are still very good that it will sell. Prepare to negotiate though and perhaps offer some buyer concessions. And remember that price adjustments are quite normal once you have tested the market.”
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.