RESALE HOME MARKET IS PICKING UP

Standing inventory and rate of sales strike a good balance.

(SACRAMENTO, CA) – On July 31st, 3,445 residential properties were listed as active and available for sale throughout the 4-county Greater Sacramento region. That number is forty percent higher than last year at this time. This significant jump might at first blush appear to be concerning but it is actually a good thing. The good news is that our housing supply currently rests in a position of reasonable balance for willing buyers and sellers with approximately two months of supply available based upon the current rate of sales. 

 “Buyers remain consistently active in our market in spite of higher than desired mortgage interest rates and upward pressure on homeowner’s insurance,” says Pat Shea, President of Lyon Real Estate. “Home sales continue to chug along with many properties still experiencing multiple offers and bidding above list price. It certainly appears that the market will remain steady for the remainder of our summer selling season.”

During the month of July, 1,717 properties closed escrow which reflected a 5 percent lift versus June numbers and an 8 percent increase compared to July of last year. Closed sales over the last 3 months combined were nearly even with those of the same period last year but our July results indicate a new momentum may be mounting. 

The rate of new open escrows or pending sales in July also reflected a positive market direction. New sales were up 12 percent compared to June and 18 percent versus July of last year. These encouraging new sale metrics are an indicator that buyers continue to surface and are not inclined to postpone 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 $689,000. This was only a 2 percent increase compared to last year. The median rested at $607,000 for the same 3 months, a 3 percent jump year over year. 

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Sellers that closed escrow in July averaged 98 percent of their original list price and were on the market an average of 31 days. Both metrics were similar to last year and very good outcomes for sellers based upon historical standards. New listings entering the market in July were nearly even with those of June yet 19 percent higher than July of 2023. This metric suggests that more potential home sellers are now willing to part with their existing mortgage and most likely, lower mortgage rate. 

Supply in the entry-level, homes below $500,000, remains a little tighter than other price points with approximately 1.5 months available based upon the current rate of sales. Inventory in the upper-end, $1,000,000 and above, is the greatest with more than 3 months of supply. That number though, also remains quite reasonable by historical standards. 

“Inflation is clearly on the decline yet local employment and wage numbers remain positive. Mortgage rates have already started to slide and the Federal Reserve Bank is surely going to start rolling back their overnight funds rate which will further the retreat,” says Shea. “The market has traveled through a protracted period of marginal listing and sales numbers but always finds a way back to normal. 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-side incentives.” 

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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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