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.”
Lyon Real Estate lends a helping hand and warm welcome to Santa Claus once again this year by participating in the national U.S. Marine Corps Reserve Toys for Tots Program.
A half dozen regional Lyon Real Estate offices are doubling as Toys for Tots drop off locations this year. Toys should be new and unwrapped, and will be distributed to families in need throughout the Sacramento region with assistance through partnerships with local nonprofits.
Parents are also invited to stop by the following Lyon Real Estate offices during December when Santa will pose for photographs with his biggest fans. Santa visits are planned for:
- Saturday, Dec. 13, 11 a.m. to 3 p.m., West Roseville/Rocklin office, 851 Pleasant Grove Blvd.
- Monday, Dec. 15, 3 p.m. to 6 p.m., Fair Oaks office, 8814 Madison Ave.
- Thursday, Dec. 18, 4 p.m. to 6 p.m., Natomas office, 2280 Del Paso Road, Suite 100.
The following Lyon Real Estate offices are accepting donated toys during normal business hours through the holiday season:
- El Dorado Hills, 3900 Park Drive
- Cameron Park, 3360 Coach Lane
- Placerville, 4330 Golden Center Drive, Suite C
- West Roseville/Rocklin, 851 Pleasant Grove Blvd., Suite 150
- Natomas, 2280 Del Paso Road, Suite 100
- Sierra Oaks, 2580 Fair Oaks Blvd., Suite 20
The mission of the Toys for Tots program is to collect new, unwrapped toys to distribute to less fortunate children in the community, helping them to experience the joy of Christmas and to send a message of hope. The Toys for Tots drive has become a tradition within some Lyon Real Estate offices. The El Dorado Hills Lyon Real Estate office started collecting toy donations 17 years ago.
“Toys for Tots is another fun but meaningful way for Lyon Real Estate to share our resources to help those in need,” said Lyon Real Estate President Pat Shea. “Making toy gifts possible for the children of families struggling to make ends meet is a great way to express the holiday spirit.”
Buyers remained “very busy” in the Greater Sacramento resale housing market in October, says Pat Shea, president of Lyon Real Estate. New open escrows were up more than 8% over September and a hefty 11% above October of 2013 according to information provided by Trendgraphix Inc., a Sacramento based reporting company.
Inventory of active and available resale homes ended the month at 5,919, a 4% drop from September as the normal seasonal decline started to emerge. These metrics left the Sacramento region with a mere 2.5 months of inventory based upon the tenacious rate of new sales.
The average price per square foot has toggled between $183 and $185 for the past 6 months and remains 7% higher than this time last year. The median price of $305,000 experienced its 6th straight month above the $300,000 mark and finished October 8% higher than 2013.
Sales in the $450,000 to $750,000 price range continued to drive the market with a 14% increase compared to October of last year and a 19% increase year over year for the quarter. Inventory of 4 months in this price point however is providing Buyers with excellent opportunities for both selection and negotiation.
Particularly noteworthy is the high end market, says Shea. Homes above the $750,000 price point are always a smaller segment of the entire market but remained vibrant with 81 new open escrows in October. Remarkably, this number represented a 22% increase over September and a 65% increase over October of 2013. The extraordinary values in our region and extended low interest rates are inspiring both move-up and migration with 8 straight months of above average sales.
“The Holiday Season is an excellent time to be in the market,” says Shea. “Inventory drops as discretionary sellers often wait until Spring. The buyers who are out and about are serious and homes are typically in their very best showing condition. Prospective sellers have a great opportunity.”
Mobile apps are adding another dimension to the house hunting mantra of location, location, location — your location while on the move anywhere, anytime when looking for the perfect home.
It’s a trend that’s catching on quickly, with an estimated 89% of new home shoppers use a mobile search engine at the onset and throughout their research, according to Digital House Hunt, a joint study from the National Association of REALTORS and Google. The same study found that mobile apps are used by 68% of new home shoppers throughout their research.
The Greater Sacramento resale housing market appears to remain on “cruise control,” according Pat Shea, president of Lyon Real Estate. The market is demonstrating consistency, stability and sustainability according to information from Trendgraphix Inc., a Sacramento based reporting company. “Sales, inventory and median price all seemed to have hit their sweet spot,” Shea added, based upon the patterns of activity over the past 3 to 6 months.
Closed sales averaged 2,357 per month in Sacramento, Placer, El Dorado and Yolo counties over the past 6 months. That volume of sales is 28 percent higher than the 1,843 average posted from the previous 6 month period. The 4-county area also experienced 2,377 new open escrows or pending sales, for the month of September. Pending sales were a mere 2 percent below the 6 month open escrow average.
Inventory of active and available resale homes ended September at 6,178. This number was just 1 percent above the trailing three month average and only 8 percent above the previous 6 month average which includes the typically tighter summer selling season.
The median sales price has locked in at $310,000 for the past five months. Shea states that this metric reflects a “continuity and balance of sales occurring in all price points.” The current median is 9 percent above the $285,000 mark posted in September of last year.
“Housing affordability in our region remains a glaring bright spot when compared to the San Francisco Bay area and other metropolitan statistical areas throughout the state,” says Shea.
“Undoubtedly, our individual counties and neighborhoods will experience monthly fluctuations in key housing metrics. However, the prospect of interest rates rising in 2015 coupled with the variety and volume of inventory currently available should keep entry level and move up buyers very engaged throughout the remainder of the year.”
Fall has arrived with leaves to rake, pies to bake and winter coats to take out of the closet. But it can be difficult for those in our community who are financially strapped and don’t have warm coats to wrap their family in.
That’s where Lyon Real Estate comes in. Throughout the month of October, Lyon accepts donations of new or reusable coats in good condition at each of its 17 offices throughout the Sacramento region. Donated coats are sought in all sizes, children and adults. To find the Lyon Real Estate office location nearest you, visit GoLyon.com. Coats can be dropped off during normal business hours.
The coats are distributed to 30 Sacramento area nonprofits, including Kids First, Hospitality House and St. Vincent de Paul. Last year, more than 4,500 coats were donated and distributed to people in need in the Sacramento region. This year, Lyon Real Estate employees hope to break that record and gather 5,000 winter coats.
“Some people buy extra, reasonably priced coats to donate when they’re shopping for themselves or their kids,” said Lyon Real Estate president Pat Shea. “But new or used, anyone donating understands the difference they’re making to someone in need. While the Sacramento area isn’t known for frigid winters, it’s cold enough to make a warm coat a vital necessity.”
This is the fourth annual Lyon Real Estate Coat Drive and it ends Oct. 31. Nonprofits will receive the donated coats during the first two weeks of November, just in time for cooler weather and longer nights.
The month of August marked the highest volume of new open escrows - 2,585 – in any given month since May of 2013 in the four county Sacramento region. Even though the available inventory continues to grow, six consecutive months of above average sales activity left a mere 2.4 months of homes available at the rapid rate of sales. Market information was provided by Trendgraphix and reported by Lyon Real Estate.
Closed sales did, however, drop approximately 10 percent from the previous month, leaving 2.8 months of inventory based upon that metric. “This gap is not unusual,” says Pat Shea, president of Lyon Real Estate. “Now that we have evolved into a more normal or equity sales market, longer escrow periods with more contingent sales are common.” He added, “It is difficult to get the entire picture from just a 30 day snapshot. Often, closing numbers roll into the following month, especially when a holiday weekend is in play.”
Shea characterized the market as demonstrating a “sustained stability” with home sales in the $400,000 to $750,000 price range enjoying a 23 percent increase and those above $750,000 a 43 percent increase over sales in the same quarter of 2013. The median price confirmed that position since it hovered in the $310,000 to $315,000 range in our region for the past 4 months.
Our growth in inventory seems to be settling in for a normal end of year pattern with only a 2 percent increase over July. “A continued and inexplicable low interest rate phenomenon coupled with a variety of available home choices continue to inspire local buyers and sellers alike,” said Shea. “Continued pressure from the red hot Bay area markets and the Downtown renaissance are also maintaining an influence over sales activity in the Greater Sacramento area.”
New open escrows were a surprising 12 percent higher in July compared to the same month just one year ago. “Even though the first quarter started out just a little bit softer than expected, five consecutive months of above average sales should pave the way for a strong finish for the entire Sacramento market by year end,” says Pat Shea, president of Lyon Real Estate. Information provided by Trendgraphix and reported by Lyon shows a mere 2.5 months of inventory available on the market based upon the current rate of closed sales.
New open sales in the $400,000 to $750,000 price range enjoyed a 15 percent improvement over June and a remarkable 45 percent jump over July of 2013. The upper-end market, often considered $750,000 and above, remained steady by posting 99 new open sales after logging 100 last month. These back-to-back record sales months in the upper-end are the two highest in many years. Ninety-nine new escrows also represented a 45 percent increase over the same month in the summer of 2013 while inventory uncharacteristically bucked the market trend with a 6 percent drop from the prior month.
The average and median sales prices have remained stable for the past three months at $343,000 and $310,000, respectively. The average price per square foot for Sacramento, Placer, El Dorado and Yolo counties also remained steady at $183. Homes for buyers under $400,000 still remain the scarcest however, with only 1.8 months available based upon the high rate of pending sales.
“It’s so great to see the sustained activity and excitement in our move-up and upper-end markets,” says Shea. “New found equity and so many excellent choices provided by the rise in inventory have people consistently moving toward the home of their dreams. Even in the entry level there is some relief with investors and flippers clearly exiting the market.” He concluded that “all relevant housing metrics point to sustained enthusiasm and continued momentum for the remainder of this year.”