When I run my market stats for my blogs, I am often writing about the Sacramento real estate market as a whole.
Within our market there are many segments that are reacting to our current economic conditions differently. It's good to look at our market as a whole to get an overview... but to more accurate you really need to break it down and analyze the segment of the market you are looking to buy in.
One of these segments is the luxury home market. For the purpose of this blog... I consider a home over a $650,000 purchase price to be a luxury home in Sacramento.
Since we recently listed a luxury bank owned home in Elk Grove (near Sacramento, CA), I thought it would be a good time share some insight into this segment of the market!
As you can see below... In September of this year there were 214 luxury homes on the market. Out of the 214 homes for sale... 9 sold and 28 went pending. We also saw a spike of pending sales in September...up 39%! This is most likely because there was an increase in inventory in September... making more homes available to write offers on.
I thought it was interesting to point out the breakdown of the 214 luxury homes on the market.
As of September of 2010, our blend of inventory in Sacramento County (as a whole) consists of approximatly 24% bank owned homes - 35% short sales - 41% private party sales.
These numbers are flip-flopped in the luxury market in Sacramento which consists of approximately 96% private party sales - 2.3% bank owned homes - 1.86% short sales.
So does this mean there a ton of foreclosures around the corner? Well... If we look at the foreclosure filings for luxury homes in September... it does not appear as if there is a huge amount on the horizon. The foreclosure filing rate in this price range has been consistent for the last several months. Once these numbers start shooting up on this graph... that's when more bank owned homes will enter the market in this price range.
The average price per square foot has been more volatile in the luxury market when compared to Sacramento County as a whole. This could be because of fluctuations of sales in different price ranges within the luxury market. For example... a home that is worth 3 million dollars is most likely going to have a higher cost per square foot when compared to a $650,000 home because of quality of finishes used in each house.
The green line below represents the average original listing price for luxury homes in Sacramento. The red line is what the sellers actually received once the property sold. In September of 2010, sellers received approximately 79% (on average) of their original listing price.
Inventory levels jumped in September as I mentioned above. According to Trendgraphix, we have 23.8 months worth of inventory based on how the current pace homes are selling for in this price range. This means if no other luxury homes came on the market... it will take us 23 months to sell the homes currently available. Anytime you see a spike in inventory like this... you can expect an adjustment in prices.
Let's recap!
There is an increase in inventory in the luxury home market in Sacramento. That means there are more homes to choose from! Just look at the pending sales in the first graph... other buyers are out in force! Search for luxury homes in Sacramento right now at my website>>
The market is certainly not heavy with short sales and foreclosures at this point.. so it is more of a "traditional market"
Did you know you get the best deal for a bank owned luxury home than a short sale or private party sale (based on average cost per foot) ?
Check out our latest luxury bank owned home listing located in Vineyard Estates in Elk Grove. This custom home sold previously for over 4 million dollars... Now bank owned and priced to sell!
10875 Grenache Way, Elk Grove, CA 95624 -$1,485,900
- 5 bedrooms and 5 bathrooms
- Almost 7000 sqft located on 4.6 acres
- Mother in law quarters
- 4 car garage plus double RV storage
Get more information about this house >>
If you are interested in selling or purchasing a luxury home in Sacramento, make sure to give Erin a call at (916) 585-3858. We are here to help!
****All the charts above reflect single family homes over $650,000 in Sacramento County.****
I'm here to help! Call me!
My job is to get you the best deal I can and help you navigate through our complex Sacramento Real Estate Market. My team works directly with many banks to sell their foreclosed homes... so I HAVE A LIST OF HOMES NOT YET ON THE MARKET! Interested in Sacramento HUD homes? Check out my other blog I write dedicated to Sacramento HUD Homes for sale!
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