Completed home sales nationally climbed to 5.26 million this October and are now above year-over-year levels for the first time since October 2013 according to the latest from the National Association of Realtors. This is great news for the real estate market, a sign that numbers are not only normalizing but strengthening for next year.
Thanks to low interest rates this fall and rising inventory, buyers are creating more sales activity. The job market has also been strengthening which is a good sign this increase will continue.
Here are the highlights from the report:
- Median existing home price was $208,300 which is a 5.5% raise from this time last year.
- Inventory fell at the end of October and unsold inventory is now 5.2% higher than last year. Yun says more houses starts are needed to increase supply and meet demand.
- All-cash sales were 27% of transactions, down from this time last year but up from last month.
- Share of first-time buyers remains at 29% for fourth month in a row.
- Distressed homes continue to decrease on the market down to 9%.
- Homes typically stayed on the market longer for an average days on market of 63 days, up from 56 days last month.
The Southern California Real Estate Market
It’s important to remember that everything in real estate is relative because the most important trends and data are those in your specific neighborhood. So here’s a snap shot from Trendgraphix of the Southern California real estate market including Orange, LA, Riverside and San Bernardino Counties.
Completed home sales rose 2.4% from last month which is a good indicator that this real estate season will continue strong. Year-over-year completed sales however are down 2.4% but are likely to be remedied by the steady rise in for sale homes (inventory).
More highlights from the report:
- Average sold prices are $569,000 which is a 6.8% increase from this time last year.
- Inventory has been steadily rising – 1.6% from last month and 26.7% from this time last year.
- Average days on market remain the same from last year; typically homes remain on the market for 67 days.
- According to Chris Pollinger, senior vice president of sales at First Team, foreclosures continue to represent a very small minority of sales activity, as an overall percentage of the business however there was a bump of foreclosure activity month over month in October.
For more information on your local real estate market down to your specific neighborhood trends, contact a First Team agent near you. You can search for an area specialist near you or reach out and we’ll connect you with one.
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