Janurary 2016 – How is our local Real Estate Market doing and how are we starting this year? (Extraits of the Lech report posted on 01/14/16 by Chuck Lech)
” … Conejo Valley … the state of the real estate market remains healthy.
For my posts this year, I decided not to compare full year to full year data, as using the entire year tends to average out the data, and we have seasonality built into our industry. These figures still compare year against year, but only for the final quarter of 2014 versus the final three months of 2015.
Comparing the final quarter of 2015 with the final quarter of 2014, the inventory at the end of the year dropped 11%. Inventory is tight with less than two months of sales, and for homes priced below $750,000, extremely tight with only one month. For the entire U.S. market, people often describe 6 months as a normal inventory, not favoring either buyer or seller. With our coastal location, I think our normal inventory should be more in the area of 3-4 months. No matter which one you choose, there is extremely little inventory available.
Median prices are up 4% compared to the final quarter of last year, and average prices even with last year. This difference is caused by the percentage of high priced homes. The more high priced homes we sell (7 figure prices) the more the average price goes up compared to the median. When the average price is below the median, it means there was less influence from the high priced homes. That was the case for the last quarter.
The number of transactions is up 2%. In July, the increase was 14%.
We are seeing business level off, and price increases level off. Both were up in the middle of the year, then came down at the end of the year.
Interest rates remain extremely attractive, and we have more people who want to move here than we have homes available. ..”
Thank you Chuck!