Monthly Housing Market Update
December 2021
Transcript:
[Andrew]
Hey guys it's Andrew and Justin with Andrew Lewis Homes here checking in with you on your January 2021 Monthly Market Update.
[Justin]
First one of the year!
[Andrew]
First one of the year -- welcome to 2021 everybody!
[Justin]
Very Cool!
[Andrew]
Super excited!
So what do we have for stats? Let's jump in!
[Justin]
Cool. A couple of quick things for you, Closed Sales as of last month.
440 last month in Murrieta and Temecula. There's a lot of activity going on in the valley.
We didn't see a massive down-turn for the holidays. People just trucked on through. 440 closed sales in the Temecula Valley last month alone.
[Andrew]
Yeah.
Another great statistic to always bring up is Days On Market - how long the homes on the market, how long did it actually take them to enter escrow. So it doesn't count the escrow period. We saw a significant decrease in that number here for January.
In the month of December, 22 days on market was the average days on market.
I'm sure a lot of you have seen things moving much faster than that but you have to take into account we have a big area.
We have a lot of luxury property as well in Temecula wine country, so that takes that into account. Just to give you an idea of how much that's accelerated the average days on market this time last year was 50 days. so now we're down to 22. It's basically chopped in half.
Your standard single-family residence right now, as far as our statistics, with having our hands on those -- just 5 days. So, self pat on the back. Thank you! Those homes, we're listing them on a Tuesday and being in escrow over the weekend. It's super quick!
[Justin]
Nice! So if you'd like to sell your house 17 days faster, give us a call.
I will also tell you there's another very interesting stat called Months Supply. Basically what that means is, if not another sign was put in the yard today, how many days would it take for buyers to buy up all the inventory of homes on the market.
That stat in a normalized market, not to get too deep... In a normalized market where buyers and sellers are on equal footing, would be 6 months. We're at point nine. What that means is, within 26 days, give or take, if not another property was listed in the Temecula Valley, we would have no inventory. The last home would be sold almost before the month-end -- crazy stat!
[Andrew]
Yeah, absolutely! I mean, that's scary.
If inventory doesn't pick up, there's just little out there at this point.
I know everyone responds to that one with "Oh, I see a million signs all over the place." Sure, but the reality is that those homes are in escrow. They come on and go that quick.
Next stat for us is Average Percent of List Price to Sales Price. This one is the one that means how much money ends up in your pocket at the end of the day based off of the price that you're asking for. That number right now, the average for Murrieta and Temecula is 100.5%. That means you're asking $400,000, you're getting 100.5% of that price. Sellers are typically getting over asking price on that.
I just realized that I get to self-pat on the back right now.
Our average, for our team right now, is at 105%. Typically we're listing a home, $400,000 home, we're typically selling that one for $420,000.
[Justin]
The takeaway would be is if you want an extra $20,000 in your pocket also call us.
We sell faster and sell for more.
[Andrew]
We're awesome!
[Andrew and Justin]
*High-five*
[Justin]
I kind of like the self-five.
[Andrew]
Self-five, yea. It's a COVID-five.
[Justin]
Yea, there we go.
The other stat that we want to point out to you is the Average Sales Price in the area. For buyers, this is a special one to pay attention to because as you know, the market is going up.
How much it's going up, Murrieta, $530,000 is the average price.
The average sales price in Temecula is predictably a little bit higher -- $610,000. Keep in mind, Temecula does have as Andrew pointed out more of a luxury segment so that will weight it that way as well.
$610,000 to purchase an average priced home in Temecula, and that's up 13% from last year. That is insane and unheard of.
One of the stats I want to pull for you guys right now as we transition into what do you do with all this would be, we just got the Corefact Report and Corefact is a real estate think tank that mortgage lenders, big banks, use a way to plan for there business so it's very reputable and very precise.
They [Corefact] predicted San Diego in 2021 is going to go up 8.1%, that's the largest appreciation of any county in the nation, and guess what? We're right next door and people are moving here in droves from San Diego county.
So what do you do with that as a buyer? Given the fact that, as Andrew said, there's almost no inventory, prices are shooting up, you have a silver lining.
Now can still be a good time for you to capitalize on this market because if you get in now you're going to realize that appreciation for the whole let's say three quarters of 2021, plus you're going to be able to take advantage of the low interests rates.
We're having clients clock in rates at two-point-three, two-point-five, percent. It's amazing and we have great lenders to help you get there.
[Andrew]
While the market is moving up, interest rates are amazing. There are as low as they can be, and then you get to ride that appreciation wave and that's really what real estate is all about.
When you're investing in real estate it's that appreciation that helps you accumulate equity in your home, and helps you to move up later.
The sooner you jump into that, is going to help you ride that wave, accumulate equity, and purchase the dream home for you later on in life.
All of our parents started with investing in a smaller home and working their way up. Now's a great time to jump in on that side.
As far as what to do with this information, if you're a seller, obviously the stats we just rattled off are amazing, it is an absolute prime seller's market right now.
There's an estimated four to five buyers for every single property and our statistics back that up.
We're seeing 20 plus offers come through on some properties right now. Seeing homes sell for, in our case, 105% of list price. Typically getting $20-$24,000 on average as far as what homes are selling for above that price.
It's a great time for sellers. It absolutely is an ideal time.
We're seeing a lot of people cashing out and moving out of state. It's a really great time just to consider what you do with the equity that's in your home.
[Justin]
You might be thinking as well, "Hey, I'm a seller, but where do I go? You just told me the buyer stats and they sound kinda ugly" right?
In some times it is difficult for buyers to get in to but just know that Andrew is going to take care of you on the sell-side and on the buy side, myself and our team, we do a great job as well at getting you a property that you're looking for even in a very tight market because we have the relationships in the valley as well as plenty of properties that we have coming to market that we can choose from for you.
Just know on both sides, whether you're staying in-state or leaving the state, sizing up or sizing down, getting the pool home, whatever it might be we'll take care of you on both sides of it no problems there.
[Andrew]
And if you guys have any questions, feel free to reach out to us. We'll post our information below.
[Justin]
There you go, January update. Talk to you guys soon.
