Catch Up on Southern California Real Estate with our January 2020 Regional Glance
Our January 2020 regional glance examines the primary real estate market trends to start the year. For what may be the first time since we started producing these reports, there are matching patterns across all four major markets that we cover. Inventory is down dramatically, prices are up, and the sales pace has quickened year-over-year. While our market reports are intended to be a macro-level picture, keep in mind that the city, community, or neighborhood in which you live may have differing conditions. If you are interested in learning more about what’s happening in your area, or of another area of interest to you, please reach out to one of our Bennion Deville Homes real estate professionals. We look forward to opening doors and unlocking possibilities for you.
Coachella Valley January 2020 Regional Glance
The January desert real estate market is off to a very strong start to the decade. Overall, home prices across the desert rose compared to the same month last year, while inventory dropped by a significant margin. Tightening inventory levels helped push home prices up and the sales pace (average days on market) increased due to fewer homes available and high demand during peak sales season. As is typically the case, the desert market starts to echo the major trends of the coastal markets with about a 12-to-18-month delay. The current market conditions are consistent with that historical trend, especially as the markets across Southern California see diminishing inventory levels. With tighter inventory and the ever-present demand to purchase a piece of paradise in the Coachella Valley, the desert real estate market will continue to ride these conditions to higher home prices.
In January 2020, the desert market saw 711 homes change hands, a 20% increase year-over-year. Those sales accounted for almost $374 million, a 21.5% jump from 2019. The average closed sale price of a home in the Coachella Valley was $518,400, which represents a 1.2% nudge up from January 2019. The price per square foot likewise saw a bump of 2.4%, up to $252.00. The days on market, or listing time, finished at 75 days on average to sell a home, a 7.4% decrease (faster) than the same period last year. The sold price versus list price, or listing discount, was 96.88%, a 0.5% improvement from January 2019. The market finished with 3,202 homes for sale, a 13.6% drop from the same period last year. Overall, there is a 4.4-month supply of inventory in the Coachella Valley, a 29% drop compared to last year, creating conditions that somewhat favor sellers. A balanced market is 6 months.
Orange County January 2020 Regional Glance
After an up-and-down 2019, marked by a tepid finish, Orange County started the new year on the upswing. A surge in activity coupled with a plunge in available inventory pushed home prices up around the county. Additionally, the sales pace quickened and the listing discount (sold price versus list price) improved as buyers had to come with their best offer in hand. At this time last year there were 4.2 months of inventory and we were talking about the O.C. regressing back toward a neutral market (6 months of inventory). Now there are only 2.2 months of inventory, giving sellers the upper hand in negotiations as demand far exceeds available inventory. With such a hot start due to extreme shifts in the market over the last 12 months, we will see how the inventory levels play a factor, and if the up and down nature of 2019 continues to rear its head in 2020 or the market has found its footing and direction.
In January 2020, there were 1,799 homes sold, a 23.6% increase from the same period last year. Those home sales accounted for almost $1.771 billion in sales volume, a 38.4% leap from January 2019. The average closed sale price of a home in Orange County finished at $984,300, a 12% bump over last year. Similarly, the average price per square foot finished the month at $491.60, a 5% increase from 2019. The sales pace, or average days on market, clocked in at 55 days on average to sell a home, shaving 3.5% off of the market time compared to the same month last year. The listing discount, or sold price versus list price, finished at 96.77%, a 0.2% improvement from last year. The market finished with 3,918 homes for sale, a 35.2% tumble from January 2019. On the whole, there are 2.2 months of inventory available, a 47.6% decline from last year, which puts sellers in the driver’s seat (a neutral market is 6 months).
San Diego County January 2020 Regional Glance
Continuing the trends that concluded the year across the county, San Diego is riding a positive wave of momentum into 2020. Low inventory levels are sending home prices higher, while a rush of demand spiked market activity. As we noted with the other Southern California markets, these changes are creating market conditions that are highly favorable to sellers, which heavily impact all of our key metrics. The sales pace (days on market) accelerated, and the listing discount (sold price versus list price) went up, meaning sellers received closer to asking price than they did at the same time last year. In the same vein as our other regions, we will closely monitor how shriveling inventory levels shape the rest of the market as 2020 marches forward.
Across the county, there were 2,033 homes sold, a 10.4% increase from the same period last year. Those home sales tallied a sales volume of nearly $1.491 billion, a 22.3% jump from January 2019. The average closed sale price finished the month at $733,200, a 10.8% improvement year-over-year. The price per square foot finished at $397.00, a 6.3% increase from last year. The sales pace, or average days on market, finished at 37 days, a 7.5% decline (faster) than last year. The listing discount, or sold price versus list price, finished at 97.6%, a 0.7% bump over January 2019. The market finished with 4,249 homes for sale, a 32.2% drop compared to the same month last year. Overall, the market favors sellers with a 2.1-month supply of inventory, a 38.2% decline from last year. Traditionally, a 6-month supply is considered a neutral market.
San Gabriel Valley January 2020 Regional Glance
As is the case with some of our other Southern California markets, the San Gabriel Valley rode a hot finish to 2019 into the new decade. Inventory plunged and activity improved, but of greater interest is the effect these two factors had on the sale price, which saw a minimal increase (0.2%). The rest of the stats we track also went in a direction that would favor sellers and even result in higher home prices – a faster sales pace, a reduced listing discount, and a shallow months-of-inventory count. The drop in inventory and the other peripheral stats indicate that prices are not done climbing, but we shall see how things progress as we head into the second month of the year. As noted this month, extreme numbers don’t always mean an extreme shift in home prices. However, a jump in the average price per square foot coupled with the rest of the key metrics we track indicate that prices may be in for a larger change than what transpired over the course of last month.
In January 2020, there were 434 homes that changed owners, an 18.6% increase over January 2019. That activity accounted for over $328 million in sales volume, an 18.8% jump. The average closed sale price of a home in the San Gabriel Valley finished at $756,500, a 0.2% bump from the same period last year. The price per square foot saw a nice increase of 5%, finishing the month at $390.90. The sales pace, or average days on market, finished at 50 days, a 9.1% decrease (faster) compared to last year. The listing discount, or sold price versus list price, finished at 98.71%, a 0.80 increase, indicating sellers were receiving closer to asking price than during the same period last year. The month finished with 983 homes for sale on the market, a 36.3% drop from the year prior. Overall, the San Gabriel Valley has a 2.3-month supply of homes, a 45.2% decline from the same period last year, creating conditions that heavily favor sellers (6 months of inventory is considered neutral).
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