LUXURY HOME SALES CHURNING IN GREATER SACRAMENTO
Annual closed sales reach highest mark since 2005
Greater Sacramento continued a multi-year trend of substantial growth in Luxury Home Sales throughout 2017 with 729 closed transactions. The year-end total marked a 25 percent jump over a solid performance in 2016 and reached the highest mark since 2005. This market information was presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
During the fourth quarter alone, 219 closed luxury home sales were posted throughout the region. This figure marked an extraordinary 62 percent increase over the same period last year and signaled that momentum for upper-end transactions was likely to continue moving into 2018.
Luxury Portfolio International recognizes home sales above $900,000 in the Greater Sacramento region as properties that map most accurately toward consumer expectations regarding luxury real estate. Approximately 2.5 percent of the total home sales throughout the region occurred in the luxury space throughout 2017. Nearly 90 percent of the 2017 luxury transactions however, took place in the $900,000 to $1,500,000 price range and only 218 properties were left on the market in that bracket at year-end.
Luxury homes that closed during the fourth quarter were on the market an average of 85 days from their original list date and received nearly 94 percent of their original list price. The average sales price for the quarter was $1,222,000, down less than 1 percent compared to the same period last year. The average price per square foot came in at $303 for properties that closed escrow during the fourth quarter.
Annualized luxury home transactions throughout the region followed a very typical pattern as Placer County recorded 39 percent of the sales in calendar year 2017, followed by: Sacramento County with 29 percent, El Dorado County 21 percent and Yolo County 11 percent. There was approximately 5 months of inventory available on December 31st based upon the current rate of closed sales. This is widely considered a balanced market when considering both buyer and seller interests.
Pat Shea, president of Lyon Real Estate, states that “the local economic climate and our amazing luxury home values continue to inspire move-up buyers within our region. Migration from nearby communities in the San Francisco to San Jose corridor will persist. The impending federal income tax changes should not affect Greater Sacramento in quite the same manner as our coastal neighbors. Luxury home buyers and sellers entertaining a move in 2018 should capitalize while inventory, mortgage rates and intrinsic property values remain well in their favor.”
About Lyon Real Estate
Ranked the number one brokerage in annual home sales in the greater Sacramento region by the Sacramento Business Journal, Lyon Real Estate has served the area for over 70 years. In 2017, the company closed 7,333 transactions worth a total of $3 billion in sales volume. Lyon Real Estate has 950 agents in 17 offices located throughout the 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. In addition to its real estate services, Lyon Real Estate offers RELO Direct, a global relocation program. For more information about Lyon Real Estate, click to GoLyon.com and follow us on Facebook.com/LyonRealEstate.
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.