HOUSING MARKET IS PRIMED FOR ACTION

Standing inventory is currently resting 19 percent higher than last year.

(SACRAMENTO, CA) – Greater Sacramento home sales continued to meander through the last days of summer, even though mortgage interest rates are now trending more favorably for the benefit of both buyers and sellers. The much-anticipated further softening of rates is very likely to result in a much stronger fourth quarter than what the market experienced over the past three years. The 1,774 new open escrows reported in September were 6 percent higher than those of August and an encouraging 9 percent higher than September of last year. New open escrows for the entire third quarter also reflected a 2 percent increase versus those of 2024. 

“Normal seasonality, also known as a fall and winter slowdown, is the typical market pattern except, of course, during the anomaly years of 2020 and 2021”, says Pat Shea, President of Windermere Signature Properties. “We currently have a higher standing inventory that should fuel sales momentum if mortgage interest rates continue to trend in a favorable direction.”

Although the volume of sales has been below normal for an extended period of time, buyers never completely abandoned the market. The rate of new sales for the third quarter remained reasonable by historical standards and actually left the market with approximately 2.5 months of resale housing supply at month-end.  For a pre-pandemic comparison, there were also 2.5 months of supply on the market based upon the rate of sales in September of 2019. The balance metric, however, is impacted by the rate of new sales, new listings entering the market, and standing inventory. New listings entering our market in the third quarter were nearly even compared to last year at this time, but up 9 percent year to date. The slight lift in property listings is largely what has kept the market in a reasonable balance, considering the corresponding increase in buyers currently active and ready to purchase a home. Fortunately for buyers, standing inventory currently rests 19 percent higher than last year at this time. 

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The current pace of these key metrics has also produced price stability and better market balance over the past 12 months. The average closed sales price of $686,000 for the third quarter was up less than 2 percent versus last year at this time, and the median of $599,000 was dead even. The number of closed escrows posted in the third quarter was up 1 percent versus last year and is currently just under 1 percent lower year-to-date, as of October 15th. The open escrow trend and positive interest rate direction should push those numbers higher by year-end. Homes that closed escrow in the third quarter were on the market for an average of 45 days versus 33 last year, and received approximately 96 percent of their original list price, compared to 98 percent.

All price points are currently displaying quiet but steady movement. The upper-end market, homes priced above $1,000,000, holds a few interesting highlights. Standing inventory is currently 10 percent higher than last year, yet new listings entering the market were up a mere 1 percent in the third quarter compared to 2024. New open escrows, on the other hand, were up 11 percent in the third quarter year over year but were 15 percent higher in September alone versus last year. 

“The market conditions created by incredibly low mortgage interest rates and the work-from-home movement back in 2020 and 2021 caused a major pull-forward effect that elevated sales far beyond any normal period in history,” says Shea. “A market reversion or correction was inevitable. Current stock market highs, interest rate softening, and home price stability have buyers and sellers in all price points in a great position to transact. Now is a really good time for people to move forward with their life plans, their goals, and their dreams.” 

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This market information was presented by Windermere Signature Properties based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.

ABOUT WINDERMERE REAL ESTATE

Windermere Signature Properties, formerly known as Lyon Real Estate, has served the Greater Sacramento Region for over 79 years. Last year, the company closed over 3,300 transactions and nearly $2 billion in sales volume. Windermere Signature Properties has over 600 agents in 13 offices located throughout the Sacramento 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. Since 2015, Windermere Real Estate has contributed more than $1,525,865 to local nonprofits throughout the Sacramento region. DRE# 00182401.

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.