First Quarter 2019 Regional Glance For Southern California Real Estate

First quarter 2019 regional real estate data for Southern California indicates an interesting start after the first three months of the year. As we tracked all year in 2018, the majority of Southern California real estate markets are in a transition period, with higher inventory levels and sluggish sales paces starting to affect home prices. The stats and analysis below are meant to paint a comprehensive picture of each market’s health and take into account a variety of property types. For the latest community and neighborhood data 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 First Quarter 2019 Regional Glance

The Coachella Valley real estate market started the year on a positive note, with rising home prices despite increasing inventory and a slowing of sales. The quarter-over-quarter number of sales went up but the list price versus sold price went down slightly, indicating some slight cracking in the market’s home pricing. Although these differences are minor, it’s still notable to see the market is adjusting. As we head out of prime season, we will see how the market adapts when the temperature heats up and our summer sales season begins.

Year-over-year, the number of homes sold (2,227 units sold) dropped by 11.9% but compared to fourth quarter 2018 there was a 4.7% increase. Additionally, closed sales volume came in at $1.15 billion, a slight decrease of 4.8% year-over-year but a 17% jump compared to last quarter. The average closed sale price hit $516,000, an 8% uptick from the same period last year and an 11.8% leap from last quarter. Likewise, the average price per square foot finished at $246.10, a 7.7% increase from the same time last year and a 6% increase from last quarter. Inventory levels remained about the same year-over-year, with 3,705 homes on the market. This represents an 8.9% increase from last quarter. The sales pace (average days on market) hit 83 days, a 4.6% decrease from the same period last year but a 5.1% increase from last quarter. The listing discount (sold price versus list price) finished at 96.3%, a 0.1% decrease from first quarter 2018 and a 0.4% decrease from last quarter. The months of inventory finished at 1.7, a 13.3% increase from the same period last year and a 6.3% climb from last quarter.

Orange County First Quarter 2019 Regional Glance

The Orange County market appears to be leading the way back toward a buyers’ market, patterns we have been tracking for some time. As inventory continues to climb we expect prices to slide a little bit, especially when coupled with a slowing sales pace. However, improvements in listing discount indicate sellers are being a little bit more realistic with their pricing and buyers are recognizing the market value of well-priced homes. With the prime sales season coming up, we will keep an eye on these metrics to see if a seasonal flood of buyer demand helps restore home prices.

There were 5,258 homes that changed hands last quarter, a 15.4% decline from the same period last year and a 14.4% decrease from last quarter. These transactions accounted for just over $4.5 billion in sales volume, a 16.3% drop from first quarter of last year and a 17.5% decline from last quarter. Additionally, the average closed sale price slumped to $857,800 – a slight (1.1%) decline from the same period last year and a 3.6% drop from fourth quarter 2018. The average price per square foot finished at $458.20, a slight increase of 0.2% year-over-year and a 2.3% drop from last quarter. Inventory levels finished with 6,669 homes on the market, a 44.8% jump from the same period last year and a 17% increase from last quarter. The average days on market clocked in at 56 days, a 36.6% increase from last year and a 21.7% increase from last year. The listing discount, or sold price versus list price, finished at 97.3%, a 0.6% drop from last year and a 0.5% increase from last quarter. Overall, there are 1.3 months of inventory on the market, an 85.7% increase from the same period last year and a 44.4% climb from last quarter.

San Diego First Quarter 2019 Regional Glance

Much like we experienced with Orange County, San Diego is starting to really swing back toward a buyers’ market. Rising inventory coupled with sluggish sales is an indicator prices may continue to regress. We will see how seasonality affects the market in the coming months as the potential for an increase in homebuyers can help reverse that trend.

Overall, 6,572 homes found new owners last quarter, a 10.9% decrease from the same quarter last year and a 12.3% jump from fourth quarter 2018. This activity created a sales volume of over $4.45 billion, a 9.5% decrease from the same time last year and a 15.3% decrease from last quarter. Overall, the average closed sale price around the county finished at $677,400 – a 1.5% increase over the same time last year but a 3.4% decline from last quarter. The average price per square foot finished at $382.00, representing a 0.6% drop from last year and a 1.6% decrease from last quarter. The market finished the quarter with 6,108 homes on the market, a 20.3% jump from the same time last year and almost exactly the same as last quarter (6,108 vs. 6,106). The average days on market finished at 37, a 27.6% increase from the same time last year and a 2.8% climb from last quarter. The sold price versus list price (listing discount) finished at 97.4%, a 0.4% decrease from last year and a 0.4% increase from last quarter. Overall, there are 0.9 months of inventory on the market, a 28.6% increase from last year and a 12.5% jump from last quarter.

San Gabriel Valley First Quarter 2019 Regional Glance

The San Gabriel Valley real estate market’s trends are tracking with the San Diego real estate market as we finish the quarter mark of the year. We will need to keep an eye on how climbing inventory affects home prices moving forward. Slight cracks in listing discount indicate buyers still perceive the market as overpriced. As more homes are put on the market in the coming months, especially for peak sales season, they will need to be a bit more realistic with their valuations and expectations of what their home is worth in order to attract the right offers.

The market finished the quarter with 1,226 transactions, a 13.9% decrease from the same period last year and an 18.1% decrease from last quarter. These transactions accounted for a sales volume of just over $940 million, an 11.8% decrease from last year and a 21.5% decrease from last quarter. The average closed sale price finished at $766,800 – a 2.5% bump from last year and a 4.1% decrease from last quarter. The average price per square foot closed at $392.50, a 0.7% increase from the same time last year and a 4.2% decrease from last quarter. The market finished with 1,500 homes for sale, a 19.1% increase from last year and a 4.1% climb from last quarter. The sales pace (average days on market) came in at 52 days, a 20.9% increase from both last year and last quarter. The listing discount (sold price versus list price) was 98.2%, a 0.9% decrease from the same period last year and a 0.4% decrease from last quarter. Overall, there are 1.2 months of inventory on the market to close out the quarter.