GREATER SACRAMENTO MARKET UPDATE OCTOBER 2016

RESALE INVENTORY SLIPS IN GREATER SACRAMENTO  

New open escrows jump 17%

A meager 4,828 homes were left active and available for sale throughout the Greater Sacramento Region on September 30th with no evidence that buyer demand is waning. That inventory number reflected 7 percent fewer properties available on the market compared to this time last year. Even though seasonal decreases in inventory are normal, last September started what would become a precipitous 40 percent plunge in inventory by February of 2016. This market information was presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.

Buyer demand however, is a vastly different story, as new open escrows finished 7 percent better in the third quarter versus 2015. More importantly, September’s new escrows were 17 percent higher than those posted in August, indicating no immediate fall-off in buyer demand. Sustained momentum is further evidenced by noting that 32 percent more new open escrows were posted in the past six months than the prior.  

Regardless of the high volume of sales, the median sales price for the region has stabilized and averaged $357,000 for the past 3 months. This represents an approximate 9 percent increase compared to this time last year. The average sales price was $395,000, an 8 percent lift versus the third quarter of 2015.

The entry level, defined as up to $400,000 held 2,245 or 45 percent of the remaining homes for sale at month-end. This marked 1.2 months of inventory based on the rapid rate of sales. The move-up market, now considered the $400,000 to $800,000 price range, held 1,993 properties or 2.1 months of inventory.  Less than 4 months of inventory is widely regarded a seller’s market.

Courtesy of Lyon Real Estate