Resale Home Sales Bumpy But Still Churning
August new open escrows jump 23 percent versus July.
Year-to-date closed home sales across the Greater Sacramento region were approximately 16 percent lower at August 31 compared to the “red-hot” run happening last year at this time. Further context reveals that year-to-date closed sales are also approximately 10 percent lower than even pre-COVID 2019.
Homebuyer resilience and persistence were on full display once again during the month of August, as 2,185 resale properties were placed under contract throughout the market area. That new open escrow number reflected a 23 percent lift over July’s total and also represented the third best open escrow month thus far in 2022.
On the other side of the spectrum, resale housing supply rested at 3,861 properties available for sale on August 31. That figure was a hefty 70 percent jump versus August of last year. Further context again reveals though that the current level of inventory is 16 percent lower than 2019 and 30 percent lower than 2018, which were both pre-COVID, or more “normal” years.
“The move-up and upper-end price points remain relatively strong and continue to reveal steadfast buyer confidence,” says Pat Shea, president and CEO of Lyon Real Estate. He added that “the $500,000 to $1,000,000 price range saw a 22 percent increase in new open escrows last month versus July. Above $1,000,000, there was an extraordinarily consistent 160 open escrows each month in June, July and August. That number is very solid by historical standards.”
The average closed sale price of $671,000 for the past three months and median price of $600,000 both represent an approximate 5 percent increase year-over-year. The level of movement and time frame considered suggest prices are more in the phase of stabilization and not reflecting significant softening just yet.
“August has often been a softer sales month due to last hurrah summer vacations and back-to-school priorities but not this year,” says Shea. “Mortgage interest rate volatility and some buyer uncertainty has certainly caused some starts and stops over the past few months. The bottom line though is that there is still only 2 months of housing supply based upon the current rate of sales.
“Positive employment metrics and a wave of millennials with elevated interest for home ownership in the Greater Sacramento region seem to be keeping the market on track. Current sales trends suggest that eager buyers seeking the excellent home values in our market area are not quite ready to let up. Even if the pace continues to ease up, you can surely expect sales numbers that track to normal seasonality in the coming months.”
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.