Southern California Real Estate Market April 2019 Regional Glance
Our April 2019 regional glance takes a pulse of the major Southern California markets, tracking the general trends that are shaping the real estate landscape. With a couple of exceptions, the region on the whole is seeing great gains in inventory and some receding prices, indicating that the shifts we have been tracking for over a year now are continuing a slow but steady pace. As with all of our regional market summaries, these numbers take into account all transactions and data in an area. If you are looking for more detailed information on a specific city, community, or neighborhood, please contact your local Bennion Deville Homes real estate professional. They can provide you with the most up-to-date information on the area of your interest. We look forward to the opportunity to open doors and unlock possibilities for you.
Coachella Valley April 2019 Regional Glance
The numbers tracked through first quarter of this year indicated significant drops in some key data points year-over-year, however, the month of April is bucking those trends. Overall, the Coachella Valley is experiencing a seasonal bump in activity and is the only market we monitor to have seen an increase in sales volume year-over-year for the month of April. The gains in home prices have somewhat offset the decline in sales activity to account for this positive number. However, we are quickly heading into the summer sales season, which usually accounts for a drop in both the number of listings on the market and the number of homes exchanging hands in the Greater Palm Springs Area. We will keep an eye on the emerging trend that shows gradual, rather than drastic, changes to these key stats since our market has seen more summer activity over the last few years than ever before. Either way, things are shaping up to be hot in the desert in the coming months, in more ways than one.
Market-wide, there were 1,039 closed sales in the Coachella Valley, a drop of 7.2% compared to last year. Those sales, however, accounted for $561,045,000 in sales volume, a slight increase year-over-year by 0.2%. The average price of a closed property finished at $540,000 which is an 8.0% jump from the same period in 2018. The average price per square foot also saw a bump, coming in at $250.20 per square foot, a 4.6% increase year-over-year. Inventory levels finished the month at 3,165 homes, a 1.0% increase compared to last year. Homes are also selling at a 4.7% faster rate, clocking in with an average of 82 days on the market. The listing discount (sold versus list price) finished at 96.6%, a slight (0.2%) decrease from the same time last year. Overall, there is a 3.3-month supply of homes on the market, a 9.4% increase from the same time last year.
Orange County April 2019 Regional Glance
With declines in activity and sales prices, and jumps in inventory, Orange County is continuing to shift back to favor buyers. The pace of sales slowing down and the listing discount getting a little deeper also indicate that buyers perceive the market as overvalued, taking their time to wait out a better deal. All of these factors are leading to gradual decreases in home prices. As we have stated for some time, sellers who want to make their move need to be realistic of their home’s pricing in order to attract serious offers in these market conditions.
Orange County was the first market we track to really show emerging signs of a shift back to a buyer’s market. In the month of April, 2,569 homes changed hands, a 1.6% drop from the same period last year. Those sales accounted for $2,727,803,000 in sales volume, a 5.4% decline year-over-year. The average closed sale price of a home was $884,700 – a 3.9% drop from the same period last year. In similar fashion, the average price per square foot closed at $459.30 per square foot, a 5.5% decrease. Inventory closed the month with 7,076 homes on the market, a 33.7% jump from the same time last year. The average days on market for a home in Orange County was 45 days, a 40.6% increase year-over-year. The listing discount (sold versus list price) was 97.8%, a 0.4% decline. Overall, there is a 2.8-month supply of homes to feed the market, which is a 40% increase year-over-year.
San Diego County April 2019 Regional Glance
With drops in activity, relatively flat prices, and climbing inventory levels, San Diego County is pacing back toward a buyers’ market. However, the market is showing some reluctance to this change, unlike what we are seeing in Orange County and the San Gabriel Valley. That being said, there are signs that the market is due to swing back toward favorable buyer conditions, including a slowing sales pace and relatively significant discounts on the list price of homes. As inventory levels go up, we expect to see more potential homebuyers continue to practice patience as they wait for home prices to meet their valuation of the market. With the summer sales season coming, usually peak season for most of our Southern California coastal markets, it will be interesting to see how rising inventory and consumer impressions of home valuations affect home prices and buyer demand.
San Diego County saw 2,987 homes change hands in April, a 4.8% drop from the same period last year. Those transactions accounted for a decrease of 3.0% to the total sales volume, which finished at $2,114,337,000 for the month. The average price for a closed home came in at $707,800 which is a slight (1.9%) bump from the same period last year. However, the average price per square foot saw a 1.1% drop, finishing at $388.70 per square foot countywide. The market finished with 6,424 homes on the market, a 14.4% increase from the same period year-over-year. The sales pace (average days on market) was 31 days, a 24.0% increase from 2018. Additionally, the listing discount (sold versus list price) finished at 97.7%, a 0.5% drop compared to last year. Overall, the county sits with an inventory of 2.2 months, a 22.2% increase from 2018.
San Gabriel Valley April 2019 Regional Glance
Mirroring the trends we are experiencing in Orange County, the San Gabriel Valley is in a substantial shift toward favoring buyers in the market. Significant changes to number of sales, home prices, and inventory levels all indicate that buyers are simply viewing the market as too high. We can also see this in a slowing sales pace and deeper listing discounts required to close deals. Although the months of inventory still remains relatively low (7 months is considered equilibrium), there are enough signs in other key categories that demonstrate buyers are starting to gain more leverage in the market and can start to affect home prices.
The San Gabriel Valley saw 543 units close in April, a 9.3% drop from the same period in 2018. The total sales volume from this activity was down by 16.2% year-over-year, finishing at $410,860,000 for the month. The average closed sale price of a home was $756,600 which is a 7.5% drop compared to last year. The average price per square foot also saw a drop (down 1.6%), closing at $405.20 per square foot. The market finished with 1,606 homes for sale, a 19.1% leap compared to the same time last year. The average days on market (sales pace) was 47 days, a 20.5% increase year-over-year. The listing discount (sold versus list price) dropped by 0.4% to 99.1%. Overall, the market finished with a 3-month supply of inventory.
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