While the luxury housing market continues to move along on its own volition, the traditional housing market received a bout of good news in early October following what has been a somewhat disappointing summer buying season. According to the National Association of REALTORS®, existing-home sales shot up in September allowing the busy season to close out on a high note, giving market watchers a renewed hope for the state of the national housing market. On a more local level, luxury markets such as Coronado are showing strength in home prices and demand as the seasons blend into a far less busy time of year.
On Tuesday, October 21, NAR released its monthly report on all of the completed transactions on single-family homes, townhomes, condominiums and co-ops throughout the United States. After falling in August to a disappointing 5.05 million, the number of homes that exchanged hands rose 2.4 percent in September to a seasonally adjusted annual rate of 5.17 million units. This is the fastest pace seen in 2014, but is still 1.7 percent below September 2013 when approximately 5.26 million units were sold.
Despite being a slower year for real estate, the stops and starts that have characterized the 2014 real estate market have slowed progress to a more reasonable rate for long-term recovery.
“Low interest rates and price gains holding steady led to September’s healthy increase, even with investor activity remaining on par with last month’s marked decline,” said Lawrence Yun, NAR chief economist. “Traditional buyers are entering a less competitive market with fewer investors searching for available homes, but may also face a slight decline in choices due to the fact that inventory generally falls heading into the winter.”
Coronado Luxury Homes Make Price Gains
With the traditional market picking up its pace, luxury markets such as Coronado are able to continue to gain steam even as colder and slower months prevail in wintertime. According to Altos Research, a California-based real estate analytics company, the median single-family home value rebounded throughout September and October, coming to a recent value of $2,484,346.
Prices calculated on the 90-day weighted average had shown a decreasing trend since early in the summer, but have recently shot up to current levels. On the much noisier seven-day average, Coronado’s home prices have fluctuated much more dramatically, shooting up to nearly $3 million in early October. This indicates that this market is seeing a lot of action on many levels of the luxury market, but prices are remaining strong for home owners.
Demand for Coronado homes is also helping to maintain strength in this local luxury market. Altos measures supply and demand relationships through a unique value known as the Market Action Index, which uses 30 as a neutral value. With a current MAI of 34.42, Coronado is in slight favor of home sellers while there are plenty of home buyers vying for the perfect home in the area.
If you would like to learn more about Coronado homes for sale, please call our team of luxury property experts today.
Check out these Coronado homes for sale priced from $7 million to $8 million