With the rest of the country looking to hunker down for the colder winter months, pending home sales activity took a bit of a nosedive in October. Despite the decrease, pending home sales have remained at healthy levels while luxury markets in warmer climates such as Corona del Mar have continued to show sustained price growth and a substantial home demand, making this local market a hot one.
According to the National Association of REALTORS®, the Pending Home Sales Index fell 1.1 percent to 104.1 in October from an upwardly-revised 105.3 in September. This forward-looking indicator analyzes contract signings, using 100 as its average level of contract activity. Despite the decrease in contract signings from September to October, the index is still above the average level and is higher than October 2013’s index value of 101.9.
Lawrence Yun, chief economist at NAR, remarked in the report that this is the sixth straight month in which contract signings maintained a healthy pace. With this promising activity, economists are hoping for an even better year in 2015 for real estate.
“In addition to low interest rates, buyers entering the market this autumn are being lured by the increase in homes for sale and less competition from investors paying in cash,” Yun said. “Demand is holding steady but would be more robust if it weren’t for lagging wage growth and tight credit conditions that continue to hamper those individuals looking for relief from rising rents.”
Corona del Mar Luxury Homes Continue To Gain Value
With conditions on the traditional end of the real estate market looking great, luxury markets such as Corona del Mar stand to look even better as affluent markets tend to lead the charge toward prosperity. According to Altos Research, a California-based real estate analytics company, the median single-family home value has continued to climb since April bringing it to a current value of $3,656,446. After falling in the earlier part of 2014, Corona del Mar home owners are gaining value back in their homes at a steady rate.
These price gains are likely bolstered by a considerable demand for homes in the community as indicated by Altos’ unique value, the Market Action Index. This value, which uses a neutral marker of 30, indicates whether conditions are pointing upward in favor of home owners looking to sell or downward in favor of home buyers. With an MAI just over neutral at 31.68, Corona del Mar home owners are finding themselves in favor as there are more home buyers out on the market than available homes.
Inventory in Corona del Mar has been somewhat flat for the last few weeks. As of November 28 there were about 61 properties on the market. With such a limited selection for home buyers to choose from, Corona del Mar home owners are finding a lot more leverage in asking more money for their homes.
If you are interested in learning more about luxury homes in Corona del Mar, please feel free to contact our team of luxury property experts.