Taking A Look at the February 2020 Real Estate Market
Our February 2020 regional glance examines the primary real estate market trends that are taking shape after the first two months of the year. Across Southern California, market inventory is shrinking, which in turn is raising the average closed sale price of a home. Despite the hot start to the year, there is now uncertainty in the market due to the outbreak of COVID-19. Although there are ways to continue to shop for homes remotely, we are heading into the unknown of how consumers and the markets will respond. We will keep you updated as things develop. Keep in mind that the regional data below is a snapshot of the entire market and may not be reflective of the trends within a specific neighborhood or community. If you would like to learn more about what’s happening in your area or another area of interest to you, please reach out to a Bennion Deville Homes real estate professional. We look forward to unlocking possibilities for you.
Coachella Valley February 2020 Regional Glance
The Coachella Valley February real estate market picked up where January left off. Inventory remains on a downward trajectory, pushing prices and sales up. Additionally, the time on market (sales pace) quickened considerably. With high demand for fewer available homes, the months of inventory is shrinking, pushing this market firmly into seller’s market territory. As with each market across Southern California, we are waiting to see how market conditions change. Since we are coming into what is traditionally the prime of the desert sales season, we may see a delay in sales activity if buyers wait to see how the economy fares.
In February 2020, we saw 775 homes find a new owner, a 16.7% jump from the same period in 2019. Those sales accounted for $442,035,000 in sales volume, a 32.0% increase over last year. The average sale price of a home finished at $570,400, which represents a 13.1% leap from the same time last year. Likewise, the average price per square foot was $270.30, a 10.3% increase. The sales pace, or average days on market, was 75 days, a 9.6% decline from the same time last year, indicating that homes are selling faster. The listing discount, noted as sold price versus list price, finished at 96.86%, a 0.6% increase from the same time last year. The market finished with 3,075 available homes, an 18.9% drop from February 2019. Consequently, there are 4 months of inventory on the market, levels that favor sellers.
Orange County February 2020 Regional Glance
Orange County’s surge to start 2020 maintained its course into February. Countywide a sharply declining inventory coupled with a fast sales pace pushed prices up, decreased the listing discount, and sent home prices skyward. Last month there were 2.2 months of inventory, which further reduced to 2 in February. Just as the market was showing some consistency with its trends, we need to pause our projections and wait to see how the market plays out over the next several weeks, minimum.
There were 2,028 homes that sold in the month of February, a 30.9% increase over the same period last year. Those home sales accounted for a 47% jump in sales volume, finishing the month with $1,909,118,000. The average closed sale price of a home bumped up by 12.3% compared to last year, coming in at $941,400. Similarly, the price per square foot was $480.70, a 6.7% climb over February 2019. The sales pace (average days on market) finished at 47 days, a 19% decrease from last year, indicating that homes are selling faster. The listing discount, or sold price versus list price, was 97.98%, a 0.3% jump over the same period last year. Overall, the market finished with 4,036 available homes, a 35.8% decline compared to February of last year. Dividing available inventory by the number of sales, we come up with only 2 months of inventory, creating conditions that greatly favor sellers.
San Diego County February 2020 Regional Glance
San Diego maintained a strong real estate market, which started in late 2019, through the first two months of 2020. As with the other markets around Southern California, a lack of inventory is having a direct effect on home prices, sales pace, and activity. The listing discount, which is calculated as a percentage dividing the sold price by the list price, was up by almost a full percentage point, meaning home sellers are getting closer to asking price than they were previously. With these conditions prevalent over the last few months, the market was poised to continue at this clip. However, it is hard to make any projections for the coming months as we are not fully clear about how the market will be affected by the COVID-19 outbreak.
There were 2,195 homes sold in San Diego County in February, representing a 3.4% increase over the same period last year. Those home sales accounted for $1,585,945,000 in sales volume, an 11.3% increase over February 2019. Across the county, the average sale price of a home finished at $722,500, a 7.7% climb over last year. The average price per square foot saw a similar bump, finishing at $405.20, a 6.5% increase. The sales pace, noted as average days on market, finished at 33 days, a 13.2% drop from February 2019, indicating homes are selling faster. The listing discount, or sold price versus list price, jumped by 0.9% over last year, finishing at 98.25%. Overall, there were 4,099 homes on the market to finish the month, a monumental 33.2% drop from the same period last year. Similarly, there is a 1.9-month supply of homes on the market, a 34.5% decline year-over-year, indicating an extreme seller’s market.
San Gabriel Valley February 2020 Regional Glance
Last month we predicted that the San Gabriel Valley was on the verge of a significant price shift, and that projection came true. Major inventory drops coupled with existing high demand for homes sent prices up by a significant margin. The sales pace also quickened slightly, but the listing discount remained about the same (there was a slight drop). However, the peripheral stats still support the idea that prices will remain at steady levels. The big caveat to all of this is the unknown market reaction to the current COVID-19 outbreak, a situation will we will closely monitor across all Southern California regions.
In the San Gabriel Valley, there were 394 homes sold in February, a 6.5% increase over the same period last year. Those home sales accounted for a 25.4% increase year-over-year to the sales volume in February, finishing at $353,013,000. A big factor in that significant sales volume leap is the average closed sale price of a home increasing by 17.8% year-over-year, finishing the month at $896,000. The price per square foot increased, but not as drastically, ending at $424.30, a healthy 5.9% bump over last year. The sales pace, or average days on market, clocked in at 53 days, a 1.9% drop from last year, an indication that homes are selling slightly faster. The listing discount, or sold price versus list price, finished at 98.15%, a 0.2% drop from the same time last year. Overall, the market finished with 981 homes for sale, a 35.2% decline from February 2019. As a result, the months of inventory closed at 2.5 months, a 39% drop year-over-year, and firmly pushing the San Gabriel Valley real estate market into a seller’s market.