Lyon Real Estate’s charitable giving program, the Lyon Cares Foundation, has long supported and provided opportunities for its agents and employees to support local causes. In an effort to expand its ability to contribute at a deeper level, the Lyon Cares Foundation has recently added greater sustainability and new ways for members of its thousand-plus agent force to support non-profits by partnering with the Sacramento Region Community Foundation.
With this new partnership, Lyon Cares will work closely with the Sacramento Region Community Foundation, which manages more than 500 charitable funds for local families, businesses and nonprofits. “The Sacramento Region Community Foundation is honored to partner with Lyon Real Estate to further their philanthropic goals and to engage its agents and employees in strategic giving,” said Foundation CEO Linda Cutler.
In February, 2,504 new open escrows represented the highest number posted in the Greater Sacramento region over the past 10 months. This figure, coupled with an already solid January signified a 35% jump over the new pending sales posted for November and December. The number of active and available homes for sale dropped to just 4,030 and left the market area with its lowest inventory since January of 2014. This information was provided by Trendgraphix Inc., a Sacramento based reporting company, and conveyed by Lyon Real Estate.
“Our market is currently in a strong seller’s position,” says Pat Shea, president of Lyon Real Estate. “While 4 to 6 months of inventory typically signifies advantage seller, our entire region currently holds a mere 1.6 months based upon the rapid pace of new open sales and sluggish rate of new property listings.”
All four counties in the region showed tight inventory based upon the current rate of new sales. Sacramento County concluded the month with 2,217 homes available on the market, the lowest since June of 2013, and demonstrated the county’s highest new open escrows - 1,600 – since May of 2013.
Placer County holds 133 luxury listings specifically, $900,000 and above. That number is almost twice that of Sacramento and El Dorado counties. Removing the luxury listings and pending sales where fewer sales occur, Placer County ended February matching the region’s average of a 1.6 month supply of available homes.
“The February median sold price of $320,000 for the Greater Sacramento Region is another big story,” says Shea. “This level has not been reached since November of 2007 and again signifies the overall health and vibrant outlook for the remainder of 2015. Low interest rates continue to support buyers. New properties entering the market however, will remain the most critical key to sustained momentum.”
Zillow chief economist Stan Humphries has this advice for homebuyers: Watch where Starbucks opens and buy a house close to one of the ubiquitous coffee shops.
The reason, he said, is that homes within a quarter mile of a Starbucks tend to rise in value faster than homes outside a quarter-mile radius. Humphries, head analyst for the online real estate tracker, calls it the “Starbucks effect.”
Sacramento’s strong rental market is paying off for existing landlords and it can be tempting for other rental owners to consider managing their own properties. However, despite the potential advantages of the current market, it takes years of experience to handle the many delicate situations that can occur in property management.
Owners considering entering the rental market as landlords need a sophisticated understanding of fair housing regulations to avoid lawsuits that hide in what may seem like common-sense assumptions. And despite the lean market for rentals, renters need to be aware of their rights in order to minimize any potential issues that might come up.
The seasonal slowdown for resale homes in Greater Sacramento has ended quite abruptly as new escrows in January jumped 44 % over December totals. Closed sales for the month were down 36% over December which was largely attributed to sluggish new escrow figures during the months of November and December. This information was provided by Trendgraphix Inc., a Sacramento based reporting company and reported by Lyon Real Estate.
“People are seeing an economic resurgence in our community and reading all the good news,” says Pat Shea, president of Lyon Real Estate. “Buyer activity is heavily based upon consumer expectations and everything just looks exceptionally positive for Greater Sacramento.”
Active and available homes on the market in the four county region ended January at 4,092. This marked the lowest total since last February and rested 34% below the 2014 high number posted in September. This left a mere 1.8 months of inventory at the current rate of pending sales. Listing numbers are expected to rise by spring however, years of purchases and refinances at low interest rates may keep supply moderate throughout 2015.
The statistics show that 48% of the current inventory is below $350,000, where 62% of the new sales for the entire region occurred last month. A further look also revealed that 42% of the inventory remained in the $350,000 - $750,000 price range where 35% of the sales occurred.
“The entry level and move-up selling season is well underway,” says Shea. “A sustained stability in the median price, hovering near $300,000 and interest rates at or below 4% have buyers back on the move. The upper-end typically gets off to a slower start but rest assured that all of the positive economic metrics have Greater Sacramento positioned for another banner year for homes sales in all price points.”
If you purchased stock early on in Apple, Google, Microsoft or Facebook, you were either really smart, pretty lucky or a little of both. What about housing? Twenty years ago, the median price of a home in San Francisco was $262,000; in 2014, it topped $1,000,000. The entire San Francisco to San Jose corridor has exploded with economic success and consequently, the evaporation of housing affordability. There is no respite in sight and nowhere to grow except perhaps in Greater Sacramento.
RESALE NUMBERS BOUNCE BACK IN SACRAMENTO REAL ESTATE
December closed sales up 12% over November
After enduring a sluggish November, the Greater Sacramento resale housing market jumped 12 percent, posting 1,938 closed sales for the month of December. Still 4 percent below December 2013 closings, a year-over-year increase of 12% in new pending sales offered the potential for a good start to 2015. This information was provided by Trendgraphix Inc., a Sacramento based reporting company and reported by Lyon Real Estate.
“Some people have been expecting an extended pause or some type of adjustment in the sales activity that has remained very persistent since March,” says Pat Shea, president of Lyon Real Estate. “Buyers just keep coming and sellers with new found equity, from the double digit appreciation experienced over the past few years, are placing their homes on the market.”
December ended with 4,206 active and available listings on the market in Sacramento, Placer, Yolo and El Dorado counties combined. This left a mere 2.2 months of inventory at the current rate of closed sales. Total available inventory experienced a significant but most likely seasonal decline of 32% since September, however numbers are expected to rise again by spring.
Shea notes some interesting facts inside the numbers: “Sixty-eight percent of the remaining homes on the market on December 31st were priced below $450,000 while 82% of the sales for the entire region occurred in that price range last year. The $450,000 - $750,000 range ended 2014 with 22% of the standing inventory where 15% of total sales occurred last year.” The median price for the region ended the year at $309,000, approximately 9% higher than December of 2013.
“Below $450,000, the Greater Sacramento region remains in a strong seller’s market,” says Shea. “Things become more balanced in the move-up price range and the advantage clearly leans toward buyers in the upper end.” He expects that this pattern will continue. “Homes in all ranges that are priced properly and show well will sell in 2015,” he added.
The Greater Sacramento region’s resale housing market found its cruising level in 2014. The median price of a home increased by 56 percent between January 2012 and June 2013. Now, another 18 months later, the median price has stabilized and remains only 7 percent above that mark, hovering around $300,000.
RESALE NUMBERS PLUMMET IN SACRAMENTO REAL ESTATE
Available housing inventory for the 4-county region is currently 12% higher than last year
Closed sales plunged 26%, inventory declined 14% and new pending sales fell by 5% in the month of November when compared to October’s resale housing metrics. This information was provided by Trendgraphix Inc., a Sacramento based reporting company and reported by Lyon Real Estate. “The numbers are largely due to there being five fewer business days in November, rather than a significant change in market conditions,” according to Pat Shea, president of Lyon Real Estate.
Closed sales numbers were 8% below November of 2013 while new open escrows for the month were actually 10% higher than this time last year. Active and available housing inventory for the 4-county region is currently 12% higher than last year but remains slightly above 5000 homes. The consistently brisk rate of new open sales leaves the region with a modest 2.5 months of inventory.
The median price in both Sacramento and Placer counties dipped slightly as compared to the previous few months and ended the period at $265,000 and $360,000 respectively. Conversely, El Dorado and Yolo counties both experienced an increase in median price ending November at $373,000 and $350,000 respectively. The combined median price for the entire region dipped to $299,000, ending a six month run of toggling between $300,000 and $311,000.
“Sales in the move-up and upper-end markets remain extraordinary” says Shea. “Sales in the $450,000 to $750,000 price range were up 11% and represented 23% more open escrows in the past three months when compared to the same quarter last year. Closed sales above $750,000 finished 30% higher and pending sales were 50% greater than the same quarter in 2013.
“Modest inventory, low interest rates and brisk new sales provide every reason to believe the resale market will remain busy through winter,” says Shea. “The Center for Strategic Economic research indicates that jobs in our region have increased by 2.5% in the past 12 months. Our last major concern is water and that seems to be getting better too.”