Luxury Home Sales Bounce Back
March sales show promise for a substantial recovery in the coming months.
Last year, Greater Sacramento experienced another big leap in luxury home sales with a record-setting 2,871 closed transactions. The first quarter of 2023 as a whole started out quite sluggishly though following both the local and national markets. Specifically, 50 percent fewer luxury priced sales were posted year-to-date throughout the region. Good news may be on the horizon as 126 closed sales were logged in March, double those of February and new open escrows were 50 percent greater than those of February. This bounce back in sales activity along with upward movement in home sales market wide, indicate that a solid number of annual luxury home sales is likely back in play.
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 in 2022 throughout Greater Sacramento fell into that luxury price range.
The average sales price for the first quarter rested at $1,432,000, nearly even with that of last year. Luxury homes that closed during the first quarter were on the market for an average of 55 days from their original list date, up from a remarkably low 27 days last year. Sellers also received an average of 94 percent of their original list price, compared to a record-setting 102 percent in 2022. The current days on the market and percentage of original list price though, are deemed quite typical when compared to most years.
New luxury priced listings arriving to market were 35 percent lower and standing inventory 20 percent lower in the first quarter versus last year at this time. The luxury market is currently considered to be well balanced however, with approximately three months of supply available at the current rate of sales. This is yet another positive for the market, as luxury priced inventory historically in Greater Sacramento and in most market areas is typically much higher.
“Luxury home buyers and sellers throughout Greater Sacramento appear to remain confident and inspired by a relatively stable stock market, strong local economy and continued migration from more expensive and high-density market areas,” says Pat Shea, president and CEO of Lyon Real Estate. “The long-term potential for remote employment continues to support sales momentum and the new normal in mortgage interest rates may have delayed but has not stopped luxury buyers. Our region enjoys larger homes, larger lots, less congestion and a very appealing quality of life. Buyers have more choices and excellent home values all across Greater Sacramento, thus it should be another very productive year in the luxury space. A bright light remains on the many excellent reasons to purchase luxury homes throughout Greater Sacramento.”
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 4,236 transactions and $2.55 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 $1,209,365 to local nonprofits.
About TrendGraphix, Inc.
TrendGraphix, Inc. is a real estate data analytics company based in Sacramento that uses local Multiple Listing Service (MLS) data. Trendgraphix provides highly-visual performance and 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 brokers and agents in more than 300 brokerages across the nation. For more information about TrendGraphix, visit www.trendgraphix.com.