Local Market Report – June 2019
“The housing market is doing fine, but it certainly can do better given what’s happening with job creation and the historically low mortgage rate that is currently in place.” said Lawrence Yun, Chief Economist for the National Association of Realtors.
What we’re experiencing is a transitional period, meaning we’re starting to see prices correct. For several years we’ve experienced soaring appreciation rates of 6-8% in many areas of our marketplace. This rate of appreciation outpaced income so aggressively that it has negatively impacted affordability for many first-time buyers.
Looking at the chart below, you can see our year-over-year appreciation figures have dropped to more reasonable levels in most cases. Another important change to look at is the percentage of supply change. This reflects the fact that our once-drastic sellers’ market is fairly quickly leveling out to a more balanced market. In fact, the Arcadia and Walnut markets are now favoring buyers, while Diamond Bar and Rowland Heights markets are fairly balanced. The remaining cities are still in what’s considered a seller’s market, but not at as competitive a rate as one year ago.
And even though mortgage rates have dropped, that fact in itself isn’t enough to bring out the buyers in full force. Why? Down payment is still a problem for many. Inventory has crept up a little, but the largest change is seen in the higher end markets. The more affordably priced homes are still needing an influx of inventory. Many Baby Boomers are opting to age in-place; a different mindset than earlier generations. This, of course, impacts the inventory situation.
You can see that there are many factors affecting the housing market. If you’re considering buying or selling and wondering what your best options are, give me a call. We can review your situation and see what the best course might be.
Covina, West Covina, and San Dimas – watch this video to see what’s currently available in your cities as well as the charted info.
|A “balanced market” is a 6 month supply of homes. A “sellers’ market” is anything less than that, while a “buyers’ market” is any that has more than 6 month supply.|
|CITY||June Average Sales Price||Year over Year Appreciation||June Ave. Days on Market||Total # of Sales – June||Total # of Sales – YTD||Active Listings||Months of Supply||Previous Yr Supply Change|
For those of you who may have friends or relatives outside our area who need a Realtor, I’m happy to do some behind the scenes screening and recommend a good agent or two to them. No cost to you or your friends, of course.
As always, find me at 626-290-1250 or MaryAnglin.Realtor@gmail.com