Stay Up-to-Date on the Market with Our Second Quarter 2019 Regional Glance
The second quarter 2019 regional glance for Southern California covers how our major regions are faring 6 months into the year. Across all markets, the quarter-over-quarter comparisons indicate the SoCal market is starting to heat up just in time for summer, however, we are a little off the pace from 2018’s numbers. As we get into the summer sales season for our coastal markets, and the incremental gains we have seen in summer activity for the desert market over the last several years, it should be another fascinating next few months in the Southern California real estate industry. As a reminder, all of the data and trends shown below factor in all activity across the spectrum of price ranges and home types. For the latest information on a specific community or neighborhood, or to find out what your home is worth in today’s market conditions, contact a Bennion Deville Homes real estate professional to discuss your options.
Coachella Valley Second Quarter 2019 Regional Glance
As mentioned in our first quarter 2019 recap, there were signs of moderate price regression in the Coachella Valley real estate market. This trend manifested in the second quarter with the average price dipping ever so slightly; however, compared to last year, home prices are still up significantly. Overall, inventory is declining and the sales pace is quickening while the listing discount remains stable. This means that the minimal price dip may be a temporary blip since demand is still strong. Coupled with declining inventory, the steady demand and decreased supply indicate there could be upward pressure on home prices heading into third quarter. We will see over the coming months if these are indications of a change in market seasonality or a precursor to more major shifting within the market.
The number of homes changing hands in the second quarter of the year totaled 3,011, a 4.8% decrease year-over-year but a 34.7% jump compared to first quarter 2019. These sales accounted for over $1.5 billion in sales volume, a 1.5% increase over the same period last year and a 33.7% climb over last quarter. The average closed sale price came in at $511,900 which accounts for a 6.6% year-over-year increase but a slight decrease of 0.7% compared to last quarter. Likewise, the price per square foot was up by 5.3% compared to last year but down by 0.9% when compared to first quarter 2019, finishing at $243.80. Inventory was down compared against both markers, finishing with 3,082 homes for sale, a slight dip of 0.2% year-over-year and a 16.8% decrease from last quarter. The average days on market clocked in at 86 days, a 3.4% decline (faster pace) than last year but a 3.6% increase over last quarter (slower pace). The listing discount (sold price versus list price) finished at 96.35%, a 0.3% drop from last year but a 0.1% increase over last quarter. Overall, there is a 1-month supply of homes on the market, the same as it was last year and down by 41.2% compared to last quarter.
Orange County Second Quarter 2019 Regional Glance
Contrary to our predictions after the first quarter of 2019, the Orange County market saw some positive momentum in the second quarter of 2019. Overall, home prices are showing signs of ascension despite a steady inventory climb. Additionally, the sales pace is starting to quicken and the listing discount is stable, showing that this may not be a temporary piece of good news for sellers, especially as we head into the busiest time of the year during the summer where demand is traditionally at its apex.
Overall, Orange County had 8,027 sales last quarter, a slight drop of 1.6% compared to last year but a 55.8% jump quarter-over-quarter. These sales accounted for just shy of $7.5 billion in sales volume, a 3.5% decline year-over-year but a 64.5% increase compared to first quarter 2019. The average closed sale price of a home as down by 1.9% year-over-year but up by 5.6% quarter-over-quarter, finishing at $907,400. In similar fashion, the average price per square foot was down by 2.4% compared to the same period last year but up by 2.7% over last quarter, with a final price of $470.70 per square foot. The average days on market (sales pace) finished at 43 days, a 38.7% increase over last year (slower pace), but a 23.2% drop compared to last quarter (quicker pace). The sold price versus list price, or listing discount, finished at 97.7%, a slight drop from the same time last year (0.5%) but a 0.4% increase over last quarter. Overall, there is a 2.8-month supply of homes on the market, a 21.7% increase over last year and 26.3% drop from last quarter.
San Diego Second Quarter 2019 Regional Glance
Just as we were off with our prediction for the Orange County market after the first quarter of the year, the San Diego market surprised us with a very strong rebound in the second quarter. Home prices went up despite rising inventory levels and, in even better news, this rebound should be sustainable given the listing discount remains at a healthy level, the sales pace is picking up, and peak sales season is upon us. Accounting for all of these factors, San Diego County could be poised for another strong summer market.
There were 9,469 homes that changed hands last quarter, a 6.2% decline compared to last year but a 41.5% increase over last quarter. These sales accounted for over $6.7 billion in sales volume, a 4.7% drop from the same period last year but a 49.1% increase quarter-over-quarter. The average closed sale price finished 1.7% higher than last year and 5.4% higher than last quarter, finishing at $711,600. The average price per square foot saw a slight drop year-over-year (0.9%) and increased by 2.8% quarter-over-quarter, ending at $392.00 per square foot. The market finished with 7,014 homes for sale, a 7.4% increase year-over-year and 14.8% increase from last quarter. The sales pace (average days on market) was up (slower) by 25% over last year and down (faster) 18.9% compared to last quarter, finishing with an average of 30 days for a home to sell. The listing discount (sold price versus list price) finished at 97.89%, a 0.2% drop from last year and a 0.4% increase over last quarter. Overall, there is a 2.2-month supply of homes, a 15.8% increase from last year and an 18.5% decline from last quarter.
San Gabriel Valley Second Quarter 2019 Regional Glance
The general trends we are seeing in Orange County are also showing up within the San Gabriel Valley market. Home prices are rebounding from last quarter but still down slightly compared to last year. However, despite rising inventory, the listing discount is nominal and steady, and the sales pace is quickening. With the summer months upon us, traditionally the busiest time of the year, we will see if this positive momentum from the second quarter keeps the market hot during peak season.
We saw 1,777 homes change hands last quarter, a 7.5% drop from last year but a 43.8% increase over first quarter. These sales accounted for over $1.4 billion of sales volume, an 8.6% drop year-over-year, but a 49.2% leap over last quarter. The average closed sale price of a home was $796,000 which is 1.2% lower than the same period last year but 3.8% higher than last quarter. Similarly, the average price per square foot was down by 1.1% year-over-year but up 4.3% quarter-over-quarter, finishing the quarter at $409.10 per square foot. Inventory was up by 11.7% compared to last year and up 18.4% over last quarter, ending with 1,776 homes available. The sales pace (average days on market) finished with 44 days of market time on average, a 22.2% increase (slower pace) from last year and a 15.4% decrease (quicker pace) from last quarter. Overall, the sale price versus list price (listing discount) was 98.92%, a drop of 0.6% compared to last year and a 0.7% increase from last quarter.
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