Annual closed sales up 33 percent over 2017
Greater Sacramento continued a multi-year trend of algebraic growth in luxury home sales throughout 2018 with 970 closed transactions. This year-end total surpassed 2017’s record-breaking performance by 33 percent. All market information presented by Lyon Real Estate is based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.
During the fourth quarter alone, 211 closed luxury home sales were posted throughout the region. This figure fell just 4 percent shy of the same period last year in spite of a notable fourth quarter cool down in the entry-level and move-up price points. New pending sales were actually 4 percent higher in December versus the prior year indicating that momentum for luxury home transactions will likely continue moving into 2019.
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 3.5 percent of the total home sales throughout the region occurred in the luxury space throughout 2018. Nearly 85 percent of the 2018 luxury transactions however, took place in the $900,000 to $1,500,000 price range and only 250 properties were left on the market in that narrower bracket at year-end.
Luxury homes that closed during the fourth quarter were on the market an average of 83 days from their original list date and received on average, 91 percent of their original list price. The average sales price for the quarter was $1,232,000, up slightly more than 1 percent compared to the same period last year. The average price per square foot came in at $304 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 34 percent of the sales in calendar year 2018, followed by: Sacramento County with 31 percent, El Dorado County 25 percent and Yolo County 10 percent. There was approximately 6 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. Continued job growth and upward pressure on employee compensation appear to remain in play all throughout Northern California. Mortgage interest rates are still favorable and toggling between 4% and 4.5%. Migration from the San Francisco to San Jose corridor will persist as those with equity elsewhere, can sell and find tremendous home values in our region. Buyers have jobs, money, financing and excellent choices in Greater Sacramento. Look for 2019 to be another very strong sales year in the luxury space.”