SACRAMENTO — Real estate industry veteran Pat Shea reports housing prices are on the rise in Sacramento, Placer, El Dorado and Yolo counties.
Shea, president of Lyon Real Estate, reports that July data revealed a 2 percent increase in average price per square foot compared to June, and a 14 percent rise since January 2012.
“Any analyst can interpret the data but our agents are living through an incredibly intense period of low inventory and multiple offers on practically every saleable home on the market,” Shea said.
Shea notes that the median price in four county regions — which includes Sacramento, Placer, El Dorado and Yolo counties — was up 5 percent over June and 16 percent since January. Shea reports that new open contracts continue double digit percentage increases in year-over-year comparisons.
“Active and available listings priced below the $400,000 price point now rest at merely 1.4 months of inventory, and this is where 87 percent of all the sales are taking place,” Shea said. “These metrics, combined with continued historically low interest rates, indicate our upward trend in home prices is tangible and real.”
Shea forecasts that the greater Sacramento region will experience an extreme seller’s market for the foreseeable future.
“Approximately 51 percent of the sales were traditional or equity sales,” Shea said. “This also signals health improvement for housing in our market.”
With close to 25 years in the industry and deep roots in the Sacramento area, Shea suggests that first-time buyers, move up buyers, buyers re-entering the market years after a distress sale as well as sophisticated investors are all active and here to stay.
“Sacramento, Placer, El Dorado and Yolo counties are ideal markets to enjoy the benefits of home ownership and long term equity appreciation,” said Shea.
Lyon Real Estate is the largest brokerage in the greater Sacramento valley and foothills, serving the area for six decades spanning a two-generation history. Lyon has nearly 900 agents in 17 offices throughout the five-county region.