September new open escrows up 32 percent versus 2019.
Greater Sacramento will most likely pass on the typical seasonal slowdown of resale homes at year-end. The 2,968 new open escrows reported in September marked a 32 percent increase compared to the same month last year. New opens for the entire third quarter also reflected a 23 percent increase versus 2019 after surviving a severe pandemic-influenced disruption from March through May. The persistent rate of new sales resulted in a paltry 2,094 homes left available for sale at month-end. This critically low inventory level — a 55 percent drop from last year — is a potential threat to the market momentum. This market information is presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
Upward pressure on prices is now real and tangible due to the rapid and extreme correction in the market. The average closed sales price of $533,000 and median of $472,000 for the third quarter were both more than 10 percent jumps over last year at this time. Closed escrows year to date and market wide are now less than 3 percent lower than 2019. Homes that closed escrow in the third quarter were on the market an average of 33 days versus 38 last year and received approximately 99 percent of original list price.
All price points remain hyper active at this time including the upper-end market, homes priced above $750,000. While the inventory level ended September at 30 percent lower than last year, 1,100 new open sales for the quarter were a staggering 81 percent greater year-over-year. Upper-end sold and closed properties for the entire third quarter totaled 1,087, up 72 percent versus 2019. The persistent momentum in new open escrows will continue to produce elevated closed sale results in the upper-end over the coming months.
“There is currently a voracious buyer appetite for excellent home values and the quality of life offered throughout the greater Sacramento region with no letup in sight,” says Pat Shea, president of Lyon Real Estate. “From a historical perspective, every aspect of our housing market continues to set new records. This is clearly evident as based upon the current rate of new open escrows, there remains less than one month of available inventory. A balanced market is typically considered 4 to 6 months.”
He added, “normal seasonal fall-off will certainly be delayed or perhaps bypassed completely by the pandemic interruption, persistently low mortgage interest rates and now an elevated migration from the San Francisco Bay area. New listings entering the market will be mission critical to maintain momentum throughout the fourth quarter and into the new year.”
