Luxury Home Sales Maintain a Steady Pace
Year-to-date closed sales at mid-October are up 5 percent year over year.
Thus far in 2022, the Greater Sacramento real estate market continues to enjoy a fairly steady rate of luxury home sales. The swift and significant jump in average sales price throughout the area over the past few years pretty much assures that elevated activity in this price point will be quite normal moving forward. The 483 sold and closed sales in the third quarter actually marked a 19 percent drop versus those of 2021. Closed escrows year-to-date at mid-October however, are actually up 5 percent compared to the same time frame last year.
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. Slightly more than 9 percent of the homes sold year to date throughout Greater Sacramento fall into that luxury price range.
Luxury home sellers received an average of 95 percent of their original list price in the third quarter. This was down from 100 percent last year yet slightly better than 94 percent for the same period in pre-pandemic, 2019. The average time on the market for luxury priced properties that closed escrow in the third quarter clocked in at 34 days, compared to 30 in the third quarter of last year. The combined average sales price for July, August and September was $1,401,000 which reflected just a 1.3 percent drop versus the same period last year.
New open escrows during the third quarter of 2022 softened somewhat as 429 luxury priced properties were placed under contract. That figure was 8.5 percent lighter than the third quarter of last year yet more than double those that were posted in the third quarter of pre-pandemic 2019. September new open escrows alone, were 19 percent fewer than those of August however, October numbers month to date thus far are besting September’s by more than 30 percent.
One potential market advantage is the now elevated number of active and available luxury home listings available for sale. On September 30, there were 552 properties listed, 56 percent higher than last year yet only 12 percent higher than those of 2019. That number is actually quite reasonable based upon the persistent rate of sales. A balanced market typically is considered to have 4 to 6 months of supply. Present market metrics reflect that we are currently hovering at just around 4 whereas in 2019 the market was north of 6.
“Even though new luxury priced listings entering the market were approximately 20 percent greater in the third quarter than those posted last year, they are just keeping a nice pace with our steady buyer demand,” says Pat Shea, CEO of Lyon Real Estate. “Positive economic news continues to prevail in Northern California and home buyer confidence remains relatively high in spite of the recent jump in mortgage interest rates. You can expect pretty decent sales numbers for the remainder of 2022 and the prospect of an elevated number of luxury home sales being the new normal for the foreseeable future.”
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.