New Year, New Life for Resale Housing Market
February 16, 2024

New Year, New Life for Resale Housing Market

January new pending sales see 36% boost versus December.

The Greater Sacramento resale housing market appeared to be finding new momentum during the month of January as new pending sales saw a very encouraging 36 percent lift versus those posted in a very lackluster December. The new sales reported also enjoyed a 14 percent increase compared to properties recorded in January of 2023. The good news indicates that 2024 is starting out on much better footing, and perhaps, the extended downturn has come to an end. 

Fortunately, 1,531 new re-sale listings also came to market in January across the four-county area. This marked a 72 percent increase in new listings versus our anemic December and a very respectable 13 percent jump compared to January of last year, when move-up activity was quite weak. New listing activity, however, could not keep pace with renewed buyer enthusiasm, and consequently, the market held only 1.5 months of standing inventory on January 31st. That number is widely considered quite low, especially when moving into the spring selling season.

The region’s average price for closed sales in January landed at $619,000. This represented a 3 percent dip versus December yet a notable 5 percent increase from one year ago at this time. Average and median sales prices peaked in June, held steady through September but have softened quite a bit since October. It appears though, that once again, things are starting to change. 

“Sales activity and prices typically soften over the winter months, and this year was no exception. It does appear though, that the seasonal recovery is starting sooner and may be more dramatic,” states Pat Shea, President and CEO of Lyon Real Estate. “The rollback of mortgage interest rates below 7 percent certainly caught buyers’ attention as the calendar flipped into 2024. You can expect sustained sales momentum if mortgage rates continue to soften, and patient sellers decide that it is time to hit the market.” 

The entry-level properties below $500,000 remained the tightest on January 31st with 20 percent fewer properties in standing inventory compared to those at year-end and 40% fewer

than last year at this time. The rate of new sales from month to month has consistently met or exceeded the number of new listings entering the market. “More opportunities for first-time buyers are mission critical for a healthy market. Entry-level and move-up buyers are the driving force for our entire housing ecosystem,” says Shea. 

Market activity for new pending sales at mid-month February reflects a 32 percent jump compared to January 15th and continues to demonstrate that buyers are ready, willing, and able to proceed with their housing goals and dreams. New listings month-to-date, unfortunately, are 10 percent fewer versus this time in January. That gap is naturally placing a strain on standing inventory that could pose a challenge come spring. 

“Clearly, resale market activity is ratcheting back up and the rolling struggles from low inventory, rising prices and mortgage interest rates are things that buyers and sellers are learning to accept and navigate,” says Shea. “These market conditions will not change dramatically anytime soon. Prices will resume their climb and though interest rates are expected to fall somewhat, they will be nowhere near the historical lows of recent years. Waiting will surely cause you to get less of a home than you desire or perhaps push you out of the opportunity altogether. Soon-to-be home sellers should also consider entering the market now, as inventory remains quite low and buyer activity is undoubtedly rebounding.” 

Download the LyonMarketUpdate_Jan2024.

Homes for sale under $1 million

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 3,191 transactions and $1.85 billion in sales volume. Lyon Real Estate has over 750 agents in 15 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 $1,368,365 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.

 

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