The Bennion Deville Homes May 2018 Regional Glance

The Southern California region remains one of the hottest housing markets in the country, with slim inventory levels and an endless demand for living in a place that features some of the best climates around the world. Below is our May 2018 regional glance, a snapshot of how some of the major markets within our region are faring. Keep in mind all of the numbers factor in a variety of property types and are meant to paint a comprehensive picture of the market. For the latest community/neighborhood data or to find out what your home is worth, contact one of our real estate professionals.

Coachella Valley May 2018 Regional Glance

Once again, the Coachella Valley real estate market demonstrated an upward trend for home owners and remains very healthy. The average sale price of a home for the month was $486,200, an increase of 12% compared to the year before. The total sales volume of transactions in the 9-city region was up 12.5%, totaling $522.2 million for the month. To go with increases in the sales volume and sales price categories, inventory dropped considerably, with a 20.2% decline year-over-year. Despite the reduced inventory levels, closed units were almost the same as last year, coming in with 4 more sales in 2018 (1,074 overall). The average days on market for a listing dropped from an even 100 in 2017 to 91 days this year, a 9% dip. The homes that sold are doing so for a smaller discount than last year, coming in at 96.7% of sale price versus list price, a 0.7% improvement from last year. Months of inventory remains at 3.1, firmly making the valley a sellers’ market. Inventory drops are not uncommon heading into the slower sales season of the summer, however, the pace of sales and demand for homes remains, making it an interesting trend to watch over the next few months.

Orange County May 2018 Regional Glance

The Orange County housing market has been intriguing in 2018, and the month of May demonstrates why. Despite a drop in closed sales year-over-year (down 8.6%) and sales volume (down 3.6%), inventory across the region is up 3.2% but still sitting at a scant 2 months. Those homes that are selling are selling for 5.2% more per square foot on average, with the average price per square foot coming in at $483.30, and the average sale price up 5.5% compared to 2017. The pace of sales is also down, dropping to an average of 30 days on market, an 11.8% drop from last year. Despite upticks in inventory, it appears some buyers are wary of list price and experiencing sticker shock, leading to fewer sales compared to last year. Those buyers who are lucky enough to get into a home are doing so at a higher price due to the market conditions favoring sellers, and with less of a discount compared to last year as the sold versus list price inched up by 0.5% to 98.3%. The trend to watch in Orange County as we head into peak homebuying season is to see how home buyers and sellers respond to increasing prices. As more inventory becomes available due to sellers cashing in on built-up equity, we could also see the market start to balance as the supply levels loosen up to meet demand.

San Diego May 2018 Regional Glance

Similar to Orange County, the San Diego County market is experiencing an interesting set of market conditions. Closed sales were down year-over-year by 12.1% despite a hefty 13.5% increase in inventory. The average sold price hit $699,500, a 7.2% jump from 2017, while the average price per square foot went up 8.1% to $395.40 countywide. Homes that sold did so at a slightly faster pace, coming in with an average of 24 days on the market (a 4% dip from last year). With a still incredibly meager level of inventory, sitting at 1.8 months, San Diego is firmly a sellers’ market. Heading into the summer months, traditionally the most active in the housing market around the county, we should keep an eye on inventory levels to see if sellers are looking to make their move and take advantage of any built-up equity in their homes. As more sellers enter the market, prices should adjust accordingly.

San Gabriel Valley May 2018 Regional Glance

The San Gabriel Valley region in the foothills of Los Angeles County is also experiencing similar patterns to other Southern California markets in San Diego and Orange counties. Closed sales saw a steady decline of 9.5% compared to the same month last year, while the average closed sale price notched up by 4.2% to $776,200. The average price per square foot also went up by 5.9% to $410.50. Despite a small dip in units available (0.6%), the months of inventory available went up by 10% to 2.2. The pace of sales was slightly faster, coming in at 33 average days on the market, down 15.4% from 2017. With minimal inventory levels causing price increases, and a quickening sales pace, this region is still very much in the throes of a market that favors sellers. While inventory levels remain relatively consistent year-over-year, the increasing prices may keep some buyers on the sidelines until more inventory becomes available and home prices are more palatable due to greater supply. Inventory levels will be under tight watch now that we are upon the summer buying season in Southern California.