Home Prices Are Rising Persistently In The Sacramento Area’s Tight Real Estate Market
The number of new listings entering the housing market just cannot keep pace with insatiable buyer demand throughout the entire 4-county Greater Sacramento region. Standing inventory at June 30th rested at 4,014 homes active and available for sale, 15 percent below the same time last year. Meanwhile, a total of 8,708 new open escrows were posted during April, May, and June, representing a 5 percent increase over the second quarter of 2016. This market information is presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
The median price for closed escrows in the month of June hit a recent milestone of $400,000. August of 2006 was the last time the region enjoyed that number, and the market was surely moving in a different direction with the impending great recession. The four-county region was staring at an astounding 15,437 homes for sale on the market at that time.
“The elevated home values across our region have led to significant increases in owner equity. Fortunately, the financial benefits are constructed on a solid foundation of more stringent loan programs and years of record low mortgage rates,” says Pat Shea, president of Lyon Real Estate. “Stability is further strengthened by the number of cash buyers prevalent over the past several years.”
The lack of entry level housing has become a major challenge throughout the state of California, and Greater Sacramento is no longer an exception. The steady growth in our local economy and relative affordability compared to the San Francisco Bay Area continue to attract more buyers.
Houses selling at less than the recent median price of $400,000 are scarce, as the number of available properties below that figure on the market in the four-county area shows: Sacramento 965, El Dorado 212, Placer 162 and Yolo 67.
Shea states, “the move-up market — homes priced between $400,000 and $750,000 — does offer some potential with 1.5 months of available inventory based upon the current rate of sales. More choices are also available for prospective buyers in this price range, courtesy of new construction opportunities. Steady move-up activity remains absolutely mission critical for our region to offer the prospect of home ownership for first time and returning buyers in the entry-level.”
About TrendGraphix, Inc.
TrendGraphix, Inc. is a real estate reporting company based in Sacramento that uses local Multiple Listing Service (MLS) data to provide highly-visual 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 agents in more than 250 brokerages in 48 states. For more information about TrendGraphix, visit www.trendgraphix.com.