Only One Cure for Summertime Market Blues

Year-to-date closed sales are quite similar to those of last year.

(SACRAMENTO, CA) – Like most areas across the country, year-over-year resale home market metrics remain sluggish throughout the Greater Sacramento region at the halfway mark of 2024. The current market conditions continue to hold would-be buyers and sellers hostage. Most if not all the malaise is due to our current mortgage interest rate environment compared to the extreme pandemic-era interest rate lows enjoyed by buyers and refinancers alike. Consequently, year-to-date closed sales of slightly less than 9,000 units and other key metrics are remarkably similar to 2023 totals.  

“Buyers are definitely in the market and are paying cash, leveraging interest rate buy-down programs or offers from their mortgage loan provider to refinance at low or no cost when rates ease,” says Pat Shea, President and CEO of Lyon Real Estate. “Fortunately, inventory has increased 40 percent and is becoming less of an issue. Many would-be sellers remain sensitive, however, to the gap between their current mortgage rate compared to what they will have next. The region is still though, rife with homeowners experiencing life changes that inspire a move and are lying in wait until rates begin to fall.” 

Search for homes in the Greater Sacramento region.

Cumulative data continues to reveal that the market remains softer by historical standards deemed as “more normal” and most likely will chug along through the remainder of the summer. The average sales price for homes that closed escrow in June was $694,000, up just 1.5 percent versus June of last year. This also marked the seventh straight month of price appreciation after a seasonal slide to $634,000 last November. The median price of $615,000 moved 5 percent north of last June and followed an identical pattern of monthly improvement. This reflects that there is ample activity and stability in all price points. 

Other interesting indicators suggest the market is moving in a positive direction but at a steadier and more casual pace than during the “dream come true” interest rate period. Homes that closed escrow in June were on the market for an average of 28 days compared to just 23 for those last year. Successful home sellers also received an average of 99 percent of their original list price, identical to last June. This remains a very positive and reasonable outcome for sellers making their moves during the current era. 

“Some relief in the interest rate arena may be coming and that will cure the blues. The U.S. economy has shown signs of stability yet maintains an underlying strength while the factors that impact inflation are easing,” says Shea. “Approximately 30 percent of homeowners in the region have homes that are free and clear and 24 percent of mortgage holders have a rate above 5 percent. Thus, the gap between existing mortgage rates and what is available for new loans should be shrinking sooner rather than later. Regardless, the job market locally remains quite strong and buyers are surely waiting in the wings. The best thing that a home seller or buyer can do is choose a truly knowledgeable and highly resourceful real estate professional to guide them through these evolving times.”

Download the Lyon Real Estate Market Update.

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.