Resale Housing Market Hits Cruise Control
(SACRAMENTO, CA) – On July 31st, 2,439 residential properties were listed as active and available for sale throughout the 4-county Greater Sacramento region. That number is nearly fifty percent lower than last year at this time. The reality, however, is that our housing supply currently appears to be at an adequate level for willing buyers with approximately one and a half months of supply available based upon the current rate of sales.
“Buyers remain quite active in our market in spite of higher mortgage interest rates and upward pressure on homeowner’s insurance,” says Pat Shea, president of Lyon Real Estate. “Home sales continue to churn, however, fewer see as many multiple offers and significant bidding above list price. It certainly appears that the market has hit cruise control for the summer selling season.”
During July, 1,544 properties closed escrow which reflected a 12 percent fall off from June. Closed sales over the last 3 months combined were 18 percent lower than those of the same period last year. The rate of new open escrows or pending sales over the past three months was also down but only 12 percent versus last year. July opens alone were only 2 percent fewer than those of June. These somewhat positive new sales metrics are an indicator that buyers continue to surface and are unwilling to delay the pursuit of their housing dreams and goals.
Despite a slight dip for the month of July, the average sales price for the region over the past 3 months landed at $675,000. This was only a 2 percent drop compared to last year. The median rested at $587,000 for the same 3 months, a 4 percent decline year over year. Sellers that closed escrow in July averaged 99 percent of their original list price and were on the market an average of 25 days. Both metrics were quite similar to last year and very good outcomes for sellers based upon historical standards. New listings entering the market in July were a notable 16 percent fewer than those of June and 34 percent lower than July of 2022. This metric suggests that many potential home sellers are waiting for mortgage rates to improve before making their next move.
Supply in the entry-level, homes below $500,000, remains extremely tight with less than one month available based upon the current rate of sales. Inventory in the upper-end, $1,000,000 and above, is the greatest with approximately 3 months of supply. That number though, also remains quite modest by historical standards.
“Employment and wage numbers continue to be positive and therefore, mortgage rates are definitely the main culprit taming home listings and sales throughout the Greater Sacramento region,” says Shea. “The market continues to find a way and by and large, it remains in relatively good shape. The undeniable story is that it was indeed overheated for an extended period and mortgage rate uncertainty has now caused some to take pause and observe. The good news remains though that sellers who price and prepare their homes wisely, will surely sell. Prepare to negotiate though and perhaps offer some buyer concessions.”
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 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.