Rising Inventory Eases Stress In Greater Sacramento Housing Market
New listings in the Greater Sacramento region’s housing market have steadily grown over the past few months. This added lift has provided enough to keep pace with persistent buyer demand. Standing inventory on June 30th rested at 4,604 homes active and available for sale. This marked a 15 percent increase over the same time last year and the highest since September of 2016.
Meanwhile, a total of 8,514 new open escrows were posted during the months of April, May and June, representing a 2 percent increase over the second quarter of 2017, according to Trendgraphix Inc., a Sacramento-based reporting company.
The median price for closed escrows in the month of June rested at $420,000 and was identical to that of May. The average sales price rolled back to $466,000 in June after 4 four straight months of increases that peaked at $475,000 in May. The average is up approximately 7 percent compared to June of 2017. Summer 2006 was the last time average sales prices and medians fell in this range.
“Please disregard the bubble talk,” says Pat Shea, president of Lyon Real Estate. “Elevated home values across our region have led to significant increases in owner equity. Not to mention that more stringent loan programs and years of record low mortgage rates for both the purchase and refinance of properties have built a secure foundation. 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 continues to attract more buyers.
There are a limited number of homes selling at less than $400,000. The number of available properties on the market priced at entry level in the four-county area shows: Sacramento 1,239, El Dorado 198, Placer 147 and Yolo 54.
Shea states, “the move-up market—homes priced between $400,000 and $750,000—does offer some potential with 1.6 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.