After going to my local 2018 Real Estate Market Economic Forecast and looking at these numbers, it does seem that prices are still rising (just a little bit more each month). Remember, this assessment is year over year so in February of last year (2017) compared to February sales of this year (2018), 17 of the 18 cities I keep my eye on have increased in price, even though 7 of the 18 cities have decreased in units sold. This means that overall pricing is continuing to rise in spite of a decrease in the number of homes being sold. This could be because they are reaching their affordability max for that city or, again, we could have inventory to blame. With that being said, it actually looks like we are getting a few more homes on the market! There are 5 cities with 3 or more months of inventory, 8 of them with 2 months, and, now, only 5 with only 1 month of inventory. At the Economic Forecast speakers touched on inventory, questioning if our "new norm" will continue to be low. We will see this spring during the typical "hot season" in which a lot of sellers put their homes on the market.
Another great way to utilize this market report is for reference for buyers searching for a home in a specific city, with a specific budget in mind. For example, if you look at the city of Upland there were 46 homes sold with the median price of $485,000.00. That means there were 18 homes that sold from a low price of $350,000 (an atypical REO sale) to the "middle," or median, price of $485,000, and 19 more homes that sold from the median $485,000 to the highest price of $849,999. This gives you a great outline of what price range is available to you in the city of Upland.
What I also noticed when reviewing this month's Market Update is that in each city the majority of homes sold were reduced in price from their original list price (the point they first came on the market). It seems sellers are expecting more than buyers are willing to pay, so be careful out there, sellers! This could actually cost you a lot of money and time on the market. Accurate pricing is vital when selling your home.
If you would like information on the city/area you live in or want to move into, give me a call. We can review your local market together to give you a clearer picture of your Real Estate wants and needs.
Diana Margala, 909-560-0145