Stay Up-to-Date on the SoCal Real Estate Market With Our November 2019 Regional Glance

Our November 2019 regional glance runs through the major trends that have emerged around our Southern California real estate markets in the penultimate month of the year. The results from this past month were interesting across all four of the regions that we track, with one common theme among all of them – a decline in available inventory. Whether this is a seasonal shift or part of the broader pattern that is happening around the nation remains to be seen. Either way, it is an interesting trend to track as we head into the final month of 2019. As with all of our monthly market recaps, the stats we pull are for the entire market and not necessarily indicative of what’s happening within a particular community or neighborhood. If you are interested in learning more about a specific area, please reach out to a Bennion Deville Homes real estate professional. We look forward to opening doors and unlocking possibilities for you.

Coachella Valley November 2019 Regional Glance

The November real estate market across the Coachella Valley shifted a bit from what we experienced in October, with a decline in inventory being the primary change. There were slightly fewer home sales in November compared to last year, but the market’s overall sales volume saw a nice bump thanks to a sharp jump in home prices. The declining inventory and always steady demand for living in one of the best resort markets in the world are partly responsible for the increase in home prices. Interestingly, homes are selling much faster but at a deeper discount, despite a rise in the average home price, so sellers may be too aggressive in their home pricing approach. Although home prices have gone up, sellers may need to be more realistic with their home valuations when listing if they want to attract the right buyers and successfully sell their property. Regardless of pricing strategy, the key market indicators show signs of a strong, healthy real estate market to wrap up 2019.

November 2019 saw 653 homes change owners, a 3.8% drop from the same period last year. Additionally, the total sales volume for the market finished with just over $322 million, a 3.5% increase from November 2018. Average home prices finished 7.6% higher this year, coming in at $493,100. Similarly, the average price per square foot jumped by 7.1% to $243.10. The days on market, or listing time, finished at 66 days on average to sell a home, a 12% drop compared to November 2018. The listing discount, or sold price versus list price, dropped by 1.2% and finished at 96.19%. The market finished out the month with 3,195 homes for sale, a 6.8% decline from last year’s total. Overall, there is a 4.9-month supply of homes on the market, a 2% decrease from last year. A balanced market is considered 6 months, so the declining inventory level could be the root cause for the upward pressure we are seeing on home prices.

Orange County November 2019 Regional Glance

After experiencing steady growth throughout 2019, the Orange County market saw some interesting results in November. Home prices dropped, albeit modestly, for the first time in months. Despite the dip in home prices, activity was up significantly and accounted for a higher sales volume across the market, and the peripheral stats instill optimism that the home price dip may be temporary. Inventory dropped significantly, and homes are fetching final sale prices that are closer to asking price this year than they were last year. Additionally, the months of inventory remains razor thin at just over a 2-month supply, which traditionally gives sellers more negotiating power due to the shortage of available inventory to meet demand. So, even with home prices adjusting down slightly, there are signs of life in a strong market with one more month left to close out the year. If the underlying stats remain steady, we expect the home price dip to be a blip on the radar and that December will finish 2019 with a bang.

The November Orange County market saw 2,218 homes sold, a 9% leap over the same period last year. This activity accounted for over $1.9 billion in sales volume, a 6.1% boost from November 2018. The average closed sale price of a home was $868,700 across the market, a 2.7% decrease from last year. Likewise, the average price per square foot decreased by 3.5% to $456.10. The market time (average days on market) finished 9.1% higher, clocking in at 48 days on average to sell a home. The listing discount, or sold price versus list price, finished at 97.65%, a 0.9% increase from last November. The market finished with 4,954 homes for sale, a 26.8% drop year-over-year. Overall, there is a 2.2-month supply of homes on the market, a 33.3% decrease from last year.

San Diego County November 2019 Regional Glance

Continuing to ride the same trend wave as last month, the November real estate market across San Diego was very strong. The market saw major categories go in all of the right directions for homeowners, with jumps in activity, average sale price, and the total market sales volume. Additionally, key indicators such as the sales pace (average days on market), listing discount, and inventory, saw changes that show the strong market is here to stay. The sales pace quickened, finishing at a month (31 days) to sell a home, the listing discount percentage went up, meaning sellers received closer to their asking price, and the inventory levels cratered, which could help explain the healthy increase in home prices. As we venture into the final month of 2019, the San Diego real estate market looks like it will finish 2019 on a high note.

In November, San Diego County had a total of 2,474 homes receive new owners, a 0.1% increase year-over-year. That minute uptick in activity led to a 5.5% increase in sales volume, ending the month with a final tally of just over $1.8 billion. The key factor in the sales volume jump can be attributed to the average closed sale price for a home around the county, which was up by 5.5% finishing at $730,300. The average price per square foot saw an increase as well (2.5%) and finished at $395.70. The sales pace, or average days on the market, was down by 6.1%, finishing at 31 days on average to sell a home. The listing discount, or sold price versus list price, bumped up by 0.5% to 97.86%. There were 5,362 homes for sale to close out the month, a 26.4% decline from the same period last year. Overall, there is a 2.2-month supply of homes on the market, a 24.1% drop year-over-year.

San Gabriel Valley November 2019 Regional Glance

The San Gabriel Valley experienced some price regression in November, despite key indicators from our October report which showed more favorable market conditions. The average sale price of a home dropped even with a sharp decline in inventory levels. However, there was more market activity in November year-over-year, perhaps the result of home prices dipping coupled with the scarcity of available homes and steady demand. The key underlying stats still indicate the year can finish strong, especially with inventory dropping. The listing discount (sold price versus list price) is very healthy and hovering around 99%, and the months of inventory is at a minuscule level. Accounting for the mixed results in November, it will be interesting to track how the San Gabriel Valley market caps off 2019. The trends show that home prices may not stay down for long, but only time will tell how the market will finish out the year.

There were 552 home sales in the San Gabriel Valley in November, a 14.8% increase year-over-year. The sales volume from those transactions accounted for an 8.9% increase to finish just shy of $423 million. Despite the positive gains in activity and total sales volume, the average closed sale price finished the month down by 5.1 % compared to the same period last year, coming in at $766,200. The average price per square foot also saw a small drop of 0.5%, finishing at $409.60 for the current month. The average days on market leapt by 9.8% to 45 days on average to sell a home. The listing discount, or sold price versus list price, decreased by 0.2% to 98.87%. Inventory levels dropped by 23.3% compared to November 2018, finishing the month with 1,301 homes for sale. Overall, there is a 2.4-month supply of homes on the market, a 31.4% decrease from the same period last year.