The improving relative strength of the Huntington Beach market is remarkable. Mortgage Rates at 3 year lows helping to increase sales volume! By Huntington Beach Realtor - Scot Campbell - 08/26/19 Source: Realtor MLS/Reports on Housing
Executive Summary:
Days of Supply: Dropped to 69 days (8/8/19). Days of Supply is an excellent measure of market activity as it tells us how many homes are selling relative to the number listed. During a strong seller's market, this measure may fall into the 40-day range. In a strong buyer's market, the measure may increase to over 200 days. A "balanced market" is 90 to 120 days. But, to judge the relative strength of the market for homes like yours, a measure must be taken for your price segment.
69 Days
Mortgage Rates spiked at 4.94% per the FreddieMac Mortgage Market Survey on 11/15/18, but rates have since come down to 3.55% as of 8/22/19. Jumbo rates seem to be even lower‌ a quick review of mortgage rates being quoted by large lenders on the web showed 3.5% for 30-Year Jumbo loans, and 2.8% for 30-Year due in 10 years Jumbo loans. Mortgage rates have not been this low since November 2016! The big story at the end of the summer selling season is the improving relative strength of the Huntington Beach real estate market. Days of Supply (The number of homes selling relative to the number listed) is the best measure of the overall market. In August 2019 this metric (69 days) shows we are back to within 2% of the five-year average for Days of Supply. Back when interest rates were still high in January, we were at 125 Days of Supply (highest in over 10 years), and in February we were at 100 Days (lower than January but 87% more days than the 5-year average). The relative improvement in the market is attributable to lower interest rates increasing the number of sales, and sellers electing to either take homes off the market or lease them (rather than leave their home on the market).
A review of the closed sales reveals many buyers focus their attention on the few new homes available and homes that are in "turn-key condition‌ the homes which are recently remodeled". Over 60% of the homes sold in July were either partially or completely remodeled, and those that were remodeled in the last 24 months sold the most briskly. Falling mortgage rates are providing an attractive incentive to buy during this summer selling season, and low rates will continue to offer an opportunity window for buyers. A review of the July 2019 Huntington Beach Residential Closed Sales shows:
Go to my website to watch a detailed market update video. www.scotcampbell.info - Market update under Resources tab
A review of the June 2019 Residential Closed Sales shows:
Average Price: The average price of detached homes sold in July 2019 was $1,140,021 an increase of 5.1% compared to July 2018. For attached homes the average price was $658,066 a small increase of 0.3% from the same period last year.
Homes Sold: In July 2019, the entire Huntington Beach market saw a total of 156 houses, townhomes, and condos sold… 102 detached properties sold and 54 attached homes sold. The sales level was 4.76% lower than the five-year average for the month of July. Detached home sales were up 29% and attached home closings decreased 11% compared to July 2018. Average Days on Market until Under Contract: The average days on market for July 2019 was 42.
Sellers: Hire a great Realtor & Brokerage to effectively market you home then: Price your home correctly, prepare it for sale, be patient, and be ready to negotiate on terms that are acceptable to you. Understand the relative strength of your market segment as your guide for pricing and marketing strategy. Buyers: Mortgage Rates have dropped… and there are more homes on the market to choose from. This is a great time to be in the market… probably the best time in over 3 years! If you have questions about the real estate market, buying, and selling real estate in Huntington Beach and Coastal Orange County, contact Scot Campbell… he can answer just about any real estate question you might want to ask.
Mobile Phone/Text: 714-336-0394 Email: Scot.Campbell@ColdwellBanker.com
Price per Square Foot: The July 2019 Average Price per Square Foot ($PSF) for the entire market was up 2.6% yearover-year at $515 (Detached homes $532 and Attached homes $467).
Scot is a Coldwell Banker Global Luxury Property Specialist, has been a licensed for 33 years, and has brokered over 1400 homes in Huntington Beach alone… including just about every type of transaction imaginable and in most neighborhoods of the city. Search for homes & read his profile/reviews at ScotCampbell.com. To order an Instant FREE Report from the Realtor MLS that shows all the active, pending, and recently sold homes in your neighborhood, go to HBhomeValue.com.
Price Disclaimer: It should be noted that an increase in average price and average price per square foot of sold homes does not 100% correlate with appreciation of all homes. If buyers just happen to be focusing their purchase on luxury homes, it is possible to have an increase in the average price of sold homes while appreciation is flat. The same is true on the downside if buyers chose to buy mostly "fixer homes" in a particular month. The best way to value an individual home is by comparing it to similar homes recently sold in the same neighborhood.