Resale Home Market Chugs Along
STANDING INVENTORY SEES A 9 PERCENT LIFT VERSUS APRIL.
Some good news surfaced last month for local resale home buyers throughout Greater Sacramento as 1,979 homes were left available in standing inventory at the end of May. The market has now seen three straight months of increased supply culminating with a 9 percent lift at month end versus April 30. Spring buyer demand increased moderately as well and ultimately left the region with approximately one month of housing supply based upon the current rate of sales.
A modest but steady increase in the number of new listings arriving to market since the first of the year did provide more opportunities for prospective home buyers. The flow of new listings remains somewhat anemic though and 38 percent below year-to-date numbers from the same period in 2022. New listings posted during the month of May alone were 6 percent higher than those of April but now at mid-June, the flow appears to be softening once more.
Buyer activity continued to gain momentum during the month of May as new open escrows posted were 16 percent higher than April’s. New open escrows month-to-date at mid-June however seem to be on track to replicate those of May and are not quite poised to make another jump just yet.
The average sales price for the month of May came in at $668,000 with the median at $580,000. Both metrics have seen 5 straight months of upward movement after experiencing a precipitous fall-off in the second half of last year. The average sold price over the past 3 months is now only 6 percent lower than that of the same period in 2022.
Homes that closed escrow during the month of May were on the market an average of 30 days and sellers received an average of 99 percent of their original list price. These market metrics have also shown steady improvement since January and are viewed as quite good by historical standards.
The upper-end, homes priced at $1,000,000 and above, experienced a significant lift in May with inventory up 6 percent, closed sales up 23 percent, and new open escrows up 32 percent compared to April numbers. These are solid indicators that the market is eager to get moving.
“Truth be told, there has been slow but steady improvement in all market indicators thus far in 2023 after the rapid rise in mortgage interest rates derailed the housing market last year,” says Pat Shea, president of Lyon Real Estate. “The good news for home buyers and sellers alike is that there is some light appearing at the end of the tunnel with improved inflation numbers and the Federal Reserve Bank appearing to ease and potentially reverse the rise in interest rates. Many prospective sellers are waiting for just a little improvement in rates to get on with their life plans. Most housing analysts have predicted and are still expecting a slow and steady recovery in the second half of 2023.”
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.