Your January 2019 Regional Glance For Southern California Real Estate

Our January 2019 regional glance takes a look at how the first month of the year fared. Looking at the overarching trends we tracked throughout 2018, the new year brought much of the same themes after New Year’s Eve. Around Southern California, home prices continue their steady climb despite a flood of inventory to the market and depressed sales numbers. As we move forward into 2019, we will be keeping a close eye on Southern California real estate with regular market reports. However, if you are seeking up-to-date information on your specific neighborhood, please contact one of your local Bennion Deville Homes real estate professionals. We look forward helping you open doors and unlock possibilities.

Coachella Valley January 2019 Regional Glance

The Coachella Valley kicked off 2019 with a mixed bag, signaling that it is starting to take cues from our coastal markets. The number of closed sales remained down, with 596 homes changing hands, a decrease of 18.2% from the same time last year. These sales accounted for $305,858,000 in sales volume, a dip of 13.1%. However, the average sale price of a closed home was $513,200 and the price per square foot was $246.30, increases of 6.3% and 8.6% respectively from January 2018. Unlike the other Southern California markets, the desert is still experiencing a reduction in inventory, which finished with 3,706 units on the market – a 7.2% drop from last year. The reduced inventory is helping to speed up the average days on market for a home, which clocked in at 81 days, a 6.9% drop from last year. The listing discount, or sold price versus list price, remained unchanged from last year at 96.4%. All factored together, the Coachella Valley has a 6.2 month supply of homes, which is an increase of 12.7% compared to last year. With lower inventory and increasing demand due to seasonality and the still affordable lifestyle, the Coachella Valley remains on track to have a solid year. Although sales numbers are down to start 2019, rising prices and seasonal demand should help keep the market healthy. For those who are thinking about cashing in on built-up home equity, now might be the time to explore your options.

Orange County January 2019 Regional Glance

As we saw throughout 2018, Orange County is a shifting market. The number of closed units was down by 19.6% compared to the same period last year, with 1,444 transactions taking place. This accounted for a 16% decline in sales volume, totaling $1,272,911,000 overall. Despite drops in sales, the average closed sale price jumped by 4.4% to hit $881,500. The average price per square foot also rose to $468.90, a 3.7% climb. Despite dipping sales numbers, the market closed the month with 6,047 homes on the market, a 59.9% jump from last year. Along with higher inventory came a longer sale time, with an average days on market of 57 days, 23.9% longer than the same time last year. As more inventory hits the market, there is more negotiating room. The sold versus list price dropped by 1% to 96.6%. Accounting for sales pace and inventory levels, there are now 4.2 months of inventory on the market, doubling the stat from the same time last year. With more inventory coming on the market, slumping sales numbers, and listing discounts getting steeper, Orange County is still in the throes of a transition, with buyers perceiving prices as too high. As we head back toward equilibrium, prices will start to come down and those who wish to sell their home will need to be realistic with market valuations in order to attract serious buyers.

San Diego County January 2019 Regional Glance

Much like Orange County, San Diego County is showing classic market conditions of a shift. The number of properties sold were down by 20.1%, finishing with 1,731 properties sold in the month. The sales volume from these transactions was $1,160,185,000 – a 17.4% drop from the same time last year. However, the average closed sale price finished at $670,200 county-wide, a 3.4% increase from last January. Despite the uptick in average sale price, the average price per square foot went backwards for the first time in a while, coming in 0.5% lower than a year ago, finishing at $376.60 per square foot. Just like Orange County, inventory levels finished the month way up, with 6,268 homes on the market, a 47.4% jump from last year. Average days on the market was 40 days, a 21.2% increase from last year. Additionally, the sold price versus list price was 96.9%, a drop of 0.6% from 2018. Overall, the market sits at a 3.6-month supply of homes, an 80% leap from the same period last year. Reading through the numbers, it is clear that homebuyers consider the San Diego market overpriced as well. Rising inventory will eventually put downward pressure on prices, which will allow more potential homebuyers to enter the market. As we move forward in 2019, it will be critical to monitor these shifts, especially now that we have seen one pricing stat show some regression. Perhaps this is a sign that market-wide price adjustments are on the way.

San Gabriel Valley January 2019 Regional Glance

The San Gabriel Valley overall is in lockstep with the market trends happening in San Diego County. There were 362 sales in January, down by 10.6% from the same time last year. Those transactions accounted for a sales volume of $273,818,000 or about 4.6% less year-over-year. Despite this, the average sale price of a closed home was $756,400 across the market, a 6.7% increase from the same time last year. Although the average sale price was up, the average price per square foot finished down by 1.8%, coming in at $372.40. As with our coastal markets, inventory is significantly higher. January finished with 1,544 homes on the market, a 42.4% jump. The average days on market reached 55 days, 22.2% longer than the same time last year. Sold price versus list price came in at 97.9%, down by 0.7%. All-in-all, the market has 4.3 months of supply, up by 59.3% from January 2018. As we are predicting with Orange County and San Diego, rising inventory rates, steeper sale price discounts, and drops in the overall number of sales indicate that buyers on the whole view the market as overpriced. The additional inventory coming to market coupled with dropped prices should help stoke sales again and get more homes exchanging hands.