Your Southern California Second Quarter 2018 Regional Glance

Second quarter 2018 stats further solidify Southern California’s status as one of the hottest real estate markets in the nation. With slim inventory levels and endless demand for living in some of the best climates around the world, Southern California will always rank among the most desirable places to call home in the world. Now that second quarter 2018 numbers are out, we have assembled a snapshot of how some of the major markets within our region are faring. The stats factor in a variety of property types and are meant to paint a comprehensive picture of each market’s health. For the latest community/neighborhood data or to find out what your home is worth, contact one of our real estate professionals.

Coachella Valley Second Quarter 2018 Regional Glance

As demonstrated in our monthly market snapshots, the Coachella Valley is very much on the rise, and the second quarter 2018 numbers confirm that point. The average sale price for a home came in at just over $480,000, a 7.2% increase year-over-year and a 0.6% nudge from last quarter. Overall, 3,151 homes changed hands, an uptick of 0.7% year-over-year and a leap just shy of 25% compared to first quarter 2018. Carrying on the good news, inventory levels dipped by 18.3% year-over-year and 17.1% compared to last quarter. Additionally, listing discount (sold vs. list price) is up year-over-year by 0.6% (96.6% vs. 96.0%) and by 0.2% quarter-over-quarter. Although inventory drops are common over the summer, the year-to-year numbers demonstrate the inventory crunch the Southern California desert is experiencing. Declining inventory is putting upward pressure on home prices. With fewer homes available to meet market demand and a steady pace of home sales, look for home prices to continue to climb as we head through the summer months and into the fall.

Orange County Second Quarter 2018 Regional Glance

Orange County is experiencing similar market conditions prevalent throughout the region, especially echoing the trends in San Diego and Los Angeles counties. The number of homes sold increased quarter-over-quarter by 34.3%, but year-over-year, those numbers dipped slightly (by 7.7%). Year-over-year, inventory levels were up by 7.4% and the pace of sales (average days on market) declined to 31 days on average, a dip of 16.2%. However, quarter-over-quarter, inventory is up by 38.2% with pace of sales dipping by 24.4%. Those homes that sold are doing so for 8.5% more money than the same time last year, and 6.6% more than last quarter. These mixed results indicate the Orange County market is in a state of transition. As more inventory starts to hit the market for the summer, buyers can be more selective and patient in their home search. This loosening of inventory hasn’t had a major impact on home prices yet, but it does appear that some buyers are sitting on the sidelines waiting for prices to come down. With more inventory becoming available we may see home prices level off, which will in turn lead to more sales. The interplay between inventory levels and home prices is the trend to watch over the summer months, traditionally the busiest time of the year for home sales in Orange County.

San Diego Second Quarter 2018 Regional Glance

San Diego’s second quarter 2018 numbers carry forward the trends seen so far this year. Closed sales are down year-over-year, dipping by 8.5%, but the second quarter rebounded nicely from first quarter, improving by 34.4% compared to first quarter 2018 sales. Additionally, average sale price increased 6.1% year-over-year and 4.8% quarter-over-quarter. Rising prices occurred despite climbing inventory levels, which improved by 18.7% year-over-year and 28.6% quarter-over-quarter. This increased inventory has not had a major effect on home prices so far as it is helping meet a heavy demand in the market. Sales pace improved by 17.2% quarter-over-quarter, and quickened by 4% year-over-year, indicating that although the supply of homes is increasing, an extremely high amount of demand still exists within the market. As more homeowners look to cash in on built-up equity in their homes, we should see more homes pop up on the market. These trends will be intriguing to monitor as the peak sale season rolls on. As with Orange County, it will be key to see how an increase of inventory affects home prices around the county.

San Gabriel Valley Second Quarter 2018 Regional Glance

The San Gabriel Valley region, located in the Los Angeles County foothills, is going through a very similar set of market conditions to the ones outlined above in San Diego and Orange counties. Year-over-year, closed sales dropped by 5.7%, while average closed sales price improved by 9.3%. Quarter-over-quarter, closed units were up by 35.1% and prices jumped 8.2%. Additionally, sales pace quickened, with homes selling 12.2% faster than the year before and 16.3% faster when compared to first quarter 2018. Similar to the other markets throughout Southern California, it will be interesting to see how an increase in available homes affects home prices. So far, more inventory has not necessarily meant a dip in home prices, but with more and more sellers looking to take advantage of a hot market, we may see a leveling off of prices, if only at a moderate pace.