Oct. 23, 2013
OCTOBER 2013 - California State-Wide Market Update and Trends
- Interest rates have increased slightly and inventory state-wide has also increased
- Economic uncertainty and the buyers waiting on government policy to be implemented have caused a slight decrease in California Single Family Home prices. Many prospective buyers' purchasing decisions have been put on hold temporarily until they feel comfortable with the status of the economy and local market.
- Market is entering the off season (upcoming holiday months in California slows the real estate market down)
Sales volume have decreased 5.1 percent from August 2013 where 434,910 homes were sold
- Lower price points (under $300K) are still very active and inventory remains low due to investors and owner occupant home buyers' activity.
- Mid to High price points ($500K-$1M+) are seeing a trend of increasing inventory and increasing unsold inventory (reasons why are only speculative at this time)
- Homes over $500K have seen a 10% increase in sales share since a year ago (September 2012). This means more homes in this category are selling in our current market. 300K-500K categories seem to have stayed about the same from a year ago (no significant increase or decrease in sales share of the market).
- Median CA Home Prices are 24.4% higher than a year ago. However, Median CA Home Prices are down 2.8% from August 2013 to a Median of $428,810.
Possible Reasons for home buyer behavior and real estate market slowing down in CA in October:
- “The debate leading up to the expected tapering of the Fed’s stimulus program caused interest rates to rise over the past several months and might have put some of the housing demand on hold,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “While interest rates have decreased since the Fed’s decision last month to postpone the pullback, the government shutdown and debt ceiling discussions over the past two weeks are likely to have an adverse effect on October home sales.”
How long did it take to sell a Single Family Home in September 2013?
- The median number of days it took to sell a single-family home also increased to 29.6 days in September from 28.8 days in August, but was down from a revised 39.2 days in September 2012.
OCTOBER 2013 - ORANGE COUNTY Real Estate Market Trends