While the real estate market in Southern California and across the United States isn’t near the levels it should be, 2013 gave it a huge boost. Prices increased dramatically in many areas, and it also saw a number of investors swoop in and buy up foreclosed and short-sale homes. Now, with fewer distressed homes on the market, there will be more people looking for a new home than a quick business endeavor, according to a report by the Orange County Register.
This news isn’t just positive for people looking for a low-priced home, but also for those interested in higher end properties. With the number of listed distressed homes at a lower rate, prices of homes in the area will be driven upwards. If Southern California follows suit with other markets in the country, such as Manhattan, San Antonio and Dallas, the luxury real estate market will boom in 2014, but home building needs to pick up in order for that to happen.
For example, in Coronado the median single-family home is listed at $2,224,115, according to Altos Research 90-day average. However, the seven-day average posted a median home value of more than $2.42 million. When looking at Altos’ total inventory, the seven-day average shows the number of homes for sale in Coronado dipped well below 70, showing how much of an effect the tight inventory has on home prices.
While Coronado is still closely hugging the fence between a seller’s and a buyer’s market, according to Altos Research Market Action Index, which is based on a number of conditions and has a neutral value of 30, it still peaks just a bit into sellers territory. That’s more than some other communities in the area can say that have values slightly or well below the 30 mark.
Coronado Home Sales Figures
Those looking for homes in the Coronado region will likely see a larger supply of homes to choose from this year and new home starts to rise. In 2013, new home sales rose to pre-recession levels and the numbers are expected to continue climbing from 8,600 in 2013 to 9,800.
A report by the Orange County Register stated: “When construction levels fell, “buyers were forced into resale homes,” (President of Real Estate Economics Mark) Boud said, which meant that new homes accounted for less than 8 percent of sales. Before the housing crash, new homes accounted for 11 percent to 19 percent of all homes sold.”
Home builders will now have to play catch up to get the market back into gear and new home sales at appropriate levels.
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(all data current as of 10/22/2017)
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