I recently received some updated statistics showing existing home sales continuing to climb. As most of us know, housing prices were relatively flat from 2008 to 2011, until 2012, when home sales rose by 9.4 percent. This increase is expected to continue this year and next as reported by Gene Wunderlich’s, Government Affairs Directors for SRCAR, recent realtor report.
His report went on to say that inventory constraints are preventing stronger growth. Realtors from around the country are reporting shortages, as well. Locally, our lack of supply has created a greater demand for homes which in large part explains the year-to-year price increases. Per Wunderlich’s report, Murrieta led the year-over-year median price posting a 23 percent bump. Temecula prices increased 18 percent. The regional median was up 17 percent. Wildomar and Lake Elsinore increased 22 percent. Menifee was up 20 percent. The region (Southwest Riverside) is up 32 percent over our low point in April 2009, Murrieta is up 30 percent and Temecula is up 36 percent.
Lack of inventory continues to be the driving force in what we are experiencing right now. We are selling nearly 2.45 homes for every new home that comes on the market. With only 677 active listings, divide that by the number of homes sold in May (686) and that calculates out to an absorption rate of 0.987.
That equates to about one month supply of homes. This rate of absorption is very one sided in favor of the seller. A healthy, normal market typically will have a 3-4 month supply of homes for buyers to choose from. Presently, buyers are fighting over scraps. For a complete copy of Wunderlich’s recent realtor report further detailing
what is happening per city, contact me. I’d be happy to forward you a copy.
It is very important to gather as much information as you can and to seek advice from professionals like a licensed realtor who can get you the current statistics and provide you with the back story on any house you are interested in buying, selling, or renting.
If you have questions regarding this and/or other real estate matters, contact Mike Mason, Broker/Owner of Mason Real Estate DRE: 01483044, Board of Director of your Southwest Riverside County Association of Realtors® (SRCAR), Short Sale & Foreclosure Resource certified by National Association of Realtors® (NAR) at Mike@GoTakeAction.com or (951) 296-8887.