Temecula California Monthly Housing Market Update
If you plan on moving or relocating to Temecula, California this blog post will be tremendously helpful. We are going to talk about our monthly Temecula housing market updates and how you can use these to navigate the Temecula housing market. One of the most important things when purchasing a home Is understanding the trends of the current market.
In Southern California, the peaks and valleys or ups and downs in the housing market fluctuate more than most areas in America so you don’t want to get caught buying at the wrong time. When the housing market crashes, it crashes hard but when the housing market is strong, we have some of the highest home prices in all of America. For example, I was selling homes for $125,000 in 2010 that are now worth $400,000 or more. Lots of opportunity for gains in Southern California if you buy it right.
What We Discuss on Our Temecula Monthly Market updates?
The data from the MLS is almost endless but I try and stick to 3 to 4 important criteria for both buyers and sellers.
I always talk about new listings or just listed properties because I feel it’s important for people to understand the inventory and how many homes are being listed during that month and compare them to the previous years. This often paints a very clear picture of the supply and demand argument. If we are seeing 200 homes listed in May of 2021 but for the previous three years we saw 300 to 400 homes listed in the same month, we can make an assumption that home prices are going to rise.
I always talk or show active listings. One of the biggest reasons is to illustrate whether or not homes are selling. On a line graph, if you see active listings diminishing over a certain period of time you can assume that most homes are in demand and selling which will drive prices up. For example, over the past six to seven months, Temecula has had very few active listings at the end of each month. Of course, you will have sellers trying to take advantage of the market and price their home too high but for the most part, if you list your home it’s going to sell.
Days on Market
This is a big one in the real estate world. If you have data that shows homes are sitting on the market on average, let’s say 30 days, you better list your property accordingly. If not, it’s not going to sell and you will eventually lose money. As of right now, the average number of days on the market is 5 days, which is unbelievably low when you compare it to the past 5-10 years. The last six months in Temecula have had the lowest days on market on average than any other time period over the past 10 years. This indicates that if you list your home it’s going to be sold and sold fast. You can also push the limit in regards to what to list it for.
This data can help home sellers plan out their move. When a home is listed in the current market, you can confidently figure the home will sell fast and that you will probably be in escrow within 3 to 5 days following a 30-day escrow. Sellers will generally have 40 days from start to finish in the Temecula housing market right now. In the current seller’s market, oftentimes sellers can negotiate a rent-back with favorable terms. This allows the seller to take a little more time and not be as rushed.
Average Sale Price
The data everybody wants to see and probably the most important stat you can look at each month is the average sale price. This gives you the best picture of where the housing market is going. As of right now, the housing market in Temecula has risen faster than any point over the past 10 to 15 years. It is pretty unbelievable to see a 6-month chart and what the numbers are. Basically, over the past six months, the average home in Temecula has gone up over $100,000.
Why is this important? Well, when you’re looking at charts monthly you will start to see trends. If the trend starts to flatten out, and you see multiple months with this trend, you could argue that the market might be headed for a downturn. On the flip side, if you see the market going up every month and you see your home value growing from $10,000 to $20,000, why sell now? Keep enjoying those gains!
The bottom line is this if you are interested in the Temecula housing market and want to keep up-to-date on exactly what’s going on, check out our YouTube channel, exploring Temecula. Every month we do these Market updates and give all of our followers a great Insight into what the housing market is actually doing in real-time. Whether you’re a buyer or a seller oh, these videos will help tremendously and give you a leg up when it comes to purchasing or selling property.
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We are licensed as both Real Estate Brokers & a Certified Residential Appraiser. We love what we do and will bring a great deal of passion, experience and expertise to the table for you.