Get the Scoop On Your Market with Our May 2019 Regional Glance
Our May 2019 regional glance tracks the major trends affecting our Southern California real estate markets. In general Southern California is seeing massive gains in inventory as homeowners try to cash in on high home prices. For the first time in months, all four markets that we track experienced gains in average closed sale price despite increasing availability of properties on the market. As you read through the summaries, please keep in mind that these numbers are general to each region and not necessarily representative of any one particular city or community. If you are interested in learning more about the market trends in a specific community or neighborhood, 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 May 2019 Regional Glance
Overall, the Coachella Valley real estate market is poised for another hot summer sales season. Healthy gains in home prices, despite rising inventory levels, indicate a solid market demand for homes across the resort cities, and homebuyers still perceive value in difference price levels. Although home sales are down slightly, the numbers are consistent with the activity experienced in previous months this year. Rising prices combined with a rapid sales pace and an acceptable listing discount indicate the summer sales season is in position to continue the recent annual trend of staying active during what has traditionally been a quieter time of the year for home sales in the desert. We will keep an eye on the trends in the coming months to see if the Coachella Valley’s shift toward a year-round market continues.
In May, there were 1,028 closed sales, representing a 5.4% drop from the same period last year. Those sales accounted for $521,698,000 in sales volume, a slight decrease of 1.1% from May of 2018. Helping to ease the sales volume dip is the average closed sale price, which finished 4.6% higher than last year, coming in at $507,500. The average price per square foot saw similar numbers, finishing at $241.80 per square foot, a 4.1% increase. The market finished the month with 3,421 homes for sale, a 2.9% increase from last year. The sales pace was also right around the same, with an average days on market of 90 days, 1.1% faster than last year. The listing discount was flat, finishing at 96.7%. Overall, there is a 3.3-month supply of homes, inching up by 6.5% over last year.
Orange County May 2019 Regional Glance
Bucking the trends we have monitored since the start of the year, the Orange County real estate market saw some signs of a mini rebound in May. For the first time in months, key metrics showed positive gains, including increases in home sales, average closed sale price, and total sales volume. However, we need to keep expectations of a major resurgence in check. Inventory saw a massive jump, the sales pace slowed dramatically, and the listing discount was a little deeper, indicating this could be a short-lived gain. As we head into what is traditionally the busiest time of the year for OC real estate, we will need to closely monitor the flood of inventory on the market and how it affects home prices. People putting their homes up for sale should be aware of the looming competitive market for buyers’ attention and price accordingly.
The month of May saw 2,895 homes change hands in Orange County, a 0.9% increase from the same time last year. Additionally, the sales volume finished 2.1% higher than May of 2018, ending with a total of $2,701,409,000. The average closed sale price of a home increased by 1.2% to $933,100. Similarly, the average price per square foot came in at $486.10, accounting for a 1.9% bump. However, inventory exploded by 28%, finishing the month at 7,432 units for sale. The sales pace also slowed considerably, finished at 43 days on average, a 43.3% increase. The listing discount also saw some regression, coming in at 97.4%, a 0.9% decline from the same time last year. Overall, there is a 2.6-month supply of homes on the market, a 30% increase from last year.
San Diego County May 2019 Regional Glance
Similar to previous months, the San Diego County market finished May in a state of flux. The market saw drops in sales, a slowing sales pace, and gains in inventory and listing discount despite a healthy bump in home prices. Going into the summer sales season, San Diego is an interesting market to track as it is defying traditional economic principles of supply and demand. However, with more homebuyers traditionally looking to make their move in the summer, the impact on home prices by the flood of inventory could be reduced. The peripheral statistics of sales pace and listing discount hint that some price regression is in store, but we will have to see how things shake out in the coming months. Either way, home sellers should be realistic with their expectations if they wish to cash in during prime house-hunting season.
There were 3,208 properties that changed hands in San Diego County in May, a 6.9% drop from the same month last year. Additionally, the closed sales volume finished 3.5% lower, coming in at $2,302,876,000. Despite the drops in activity, the average closed sale price increased by 3.6% to $717,900. The average price per square foot also saw a slight increase (1.1%), finishing at $398.30. Inventory levels shot up by 14.3% to 6,740 units. The sales pace slowed, finishing at 29 days on average, representing a 20.8% increase compared to last May. The listing discount (sold price versus list price) came in at 97.9%, a 0.2% drop. Overall, the market has 2.1 months of inventory to meet demand, a 23.5% increase over last year.
San Gabriel Valley May 2019 Regional Glance
The trends in the San Gabriel Valley real estate market are eerily similar to what we are seeing in Orange County, with a few key exceptions. There was a major average sale price increase despite a drop in market activity and a noticeable gain in inventory levels. Sales pace also slowed considerably while the listing discount grew a little deeper, indicating some price regression is on the horizon. As with our coastal markets, the San Gabriel Valley’s peak season is upon us, and the trends we are tracking show a mixed bag at first glance. However, with declines in sale price versus list price (listing discount) and rapidly rising inventory levels, how much longer will prices continue to rise? While more buyers traditionally look for homes in the summer, the degree to which home prices drop could be softened due to high demand. We will continue to track the trends and see how the market unfolds as we head into the heat of June and beyond.
The San Gabriel Valley saw a slight dip (3.3%) in the number of home sales in May, with a total of 617 properties changing hands. The total sales volume from those sales accounted for a 5% increase, finishing at $519,421,000. Additionally, the average closed sale price of a home jumped by 8.6%, hitting $841,800. Similar to gains in the average sale price, the average price per square foot reached $413.50, a 0.9% bump over last year. The number of homes for sale finished the month 19.1% higher than last May, with 1,693 properties available. However, the sales pace (average days on market) saw a major slowdown, reaching 42 days, a 27.3% increase. Additionally, the listing discount (sold price versus list price) dropped by 1% year-over-year, coming in at 98.8%. Overall, there is a 2.7-month supply of homes, a 22.7% increase over last year.
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