Sacramento-region luxury home market heating up

 

images   Sacramento-region luxury home market heating up

The Sacramento region’s upscale home market continued to heat up in this year’s second quarter.

There were 166 closed luxury home sales in the greater Sacramento region in this year’s second quarter, a 37 percent increase over the previous year, according to Lyon Real Estate.

Lyon called it the strongest quarterly showing in the high-end segment since the summer of 2007. Lyon’s report on the region’s upscale homes – those priced at $900,000 or more – was based on data from the Sacramento-based real estate tracking firm Trendgraphix Inc.

“Luxury momentum is very strong and likely to continue through summer,” said Lyon President Pat Shea.

Lyon said the lofty price segment accounted for only about 2 percent of regional sales in the second quarter ended June 30. But the numbers are attention-grabbing: 15 percent of the pending sales and 13 percent of the closed sales were more than $1.5 million.

Lyon said the high-end market has been helped along by increased inventory of active and available luxury properties, up 20 percent in the second quarter compared with last year.

Shea characterized the luxury market’s current momentum as part of a process that evolved over roughly four years, beginning with a thawing in the entry-level market. “It’s the domino effect. Activity breeds more activity,” he said.

Now, Shea said, “awareness of increased sales activity in the move-up and luxury market segments is pervasive and inspiring some luxury owners to downsize, but we are seeing even more luxe-to-luxe move-ups.”

Shea said the high-end area homes also are getting increased interest from buyers in the ultra-pricey Bay Area market.

“Spill-over buyers from the coastal areas and relentlessly low interest rates are also fanning the fire,” Shea said.

The Lyon report said 40 percent of the region’s second-quarter closed luxury home sales were in Placer County, 26 percent in Sacramento, 19 percent in El Dorado County and 15 percent in Yolo County. Shea noted that Granite Bay has been a hot spot in recent months.

Lyon’s second-quarter numbers dovetailed with those released by Coldwell Banker Residential Brokerage, which said luxury home sales in the area spiked 47 percent year-over-year. Figures are based on Multiple Listing Service data of all homes sold for more than $750,000 in the April-to-June period in Sacramento, El Dorado and Placer counties.

Coldwell said the 278 luxury home sales in the region not only surpassed 188 in the same quarter last year but were more than double 130 transactions recorded in this year’s first quarter, historically a time of decreased homebuying activity.

Coldwell said the median sale price of a luxury property in the second quarter was $900,000. Granite Bay had the most luxury home sales in the quarter, with 56.

“The good news for buyers…is that prices remain attractive and inventory is starting to bubble up a little, giving buyers more opportunities to get into a home as we make our way through summer,” said Kris Vogt, president of Coldwell Banker in the Sacramento region.

 

Source: Sacramento Bee

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