Even with reports of a favorable outlook for the Southern California real estate market in 2015, housing analysts are still tallying up data from 2014 to get a better idea of where the market is at in real time. Last year’s slow but strong gains for the real estate market were recently further reiterated by the National Association of REALTORS’® Pending Home Sales Index, which is a forward-looking indicator based on contract signings.
According to NAR, pending home sales rose slightly in November and overcame year-over-year levels for the third straight month in a row. The index value rose from a downwardly revised 104 in October to 104.8 in November. The index value also came in 4.1 percent higher than a year earlier when pending home sales reached a 100.7 percent level. This gain is the highest the real estate market has seen since August 2013 when the year-over-year gain was marked at 5.6 percent.
Lawrence Yun, chief economist of NAR, credits a number of factors in the economy that are contributing to consumer confidence such as falling gas prices, job growth, wage increases for employees and lower requirements for down payments. NAR also recently released its 2014 Profile of Home Buyers and Sellers which reported a median downpayment value of 6 percent for first-time buyers and 13 percent for repeat home buyers.
“The consistent economic growth and steady hiring we’ve seen the second half of this year is giving buyers enough assurance to consider purchasing a home before year’s end,” Yun said.
Luxury Home Market in Coronado Works Toward Equilibrium
Although operating on a very different scale than the traditional housing market, the luxury markets of Southern California have been benefitting from prosperous conditions on the national level as well. In Coronado the luxury market has been working its way toward an equilibrium between home buyers and sellers, giving all parties a fair chance for a favorable transaction.
Altos Research, a California-based real estate analytics company, reports that Coronado home prices are still managing to maintain somewhat of a plateau after climbing through much of the fall months in 2014. Prices of homes sold in Coronado have downgraded only slightly since the last few days of the year bringing the median single-family home value down to $2,603,962.
This slight fluctuation in the median home value in Coronado indicates a market in which buyers and sellers are fairly evenly matched. Altos reports on buyer and seller balance through a unique value known as the Market Action Index, which uses 30 as a neutral point. The MAI for Coronado is currently showing a value of 33.95, which is just slightly in favor of home sellers being just over the neutral value. The skew is not remarkable enough to ensure that home prices will turn back upward or that luxury buyers will have a difficult time in the Coronado home market, however.
If you are interested in the luxury housing market in Coronado, please give our team of experts a call today. We’d love to help you navigate this beautiful community.