Murrieta CA Condo & Townhome Monthly Real Estate Market Report - September 2011.
This monthly report reflects the changes in Murrieta’s condominium and townhome real estate market over the past 12 months.* So how do things compare to a year ago? Well last month, median condo and townhome listing prices were higher compared to a year ago, but sold prices were lower. Meanwhile, the number of condos and townhomes listed for sale and the number sold are both down. And there’s still a high number of Short Sales and REO’s on the market. Read on to find out how these factors are impacting Murrieta’s condo and townhome real estate market.
Median Condo & Townhome Prices
Listing prices were higher last month compared to this time last year. However, sold prices were lower compared to last year. Last month the median listing price was $125,000, up from $121,900 a year ago. (The listing price is the amount that sellers wanted someone to pay for their home.) The median sold price was $119,000, which is down from $122,500 a year ago. (Sold prices are the actual amount that buyers paid for the home.) Though sold prices are slightly down from last year, the good news is that prices continued to remain stable during the past 12 months, with condos and townhomes selling between $115,000 to $125,000.
Median Condo & Townhome Inventory
The number of Murrieta condos and townhomes listed for sale is down from this time last year, and the number sold is also down. Last month there were 103 listings for sale, down from 127 a year ago, and there were 83 condos and townhomes sold last month, which is down from 119 a year ago. Though the number of condos and townhomes sold is down from a year ago, which would tend to put downward pressure on sold prices due to lower demand, the number of homes listed for sale also dropped, which puts upward pressure on prices due to a smaller supply. This helps explain why condo and townhome sold prices have remained stable through the year.
Median Condo & Townhome Sales Types
The Murrieta condos and townhomes sold can be categorized into three transaction types: Standard, Short Sale, and REO. Standard sales are traditional, where owners sell their homes for more than they paid. Short Sales, also known as Short Pays, are sales where owners sell the home for less than they owe on their mortgage and must seek their lender’s approval to sell the home. REO’s (Real Estate Owned) are foreclosed homes where lenders are now the owners and are offering the home for sale. REO’s are also known as bank-owned homes.
The number of REO’s and Short Sales sold is down from this time last year, while the number of Standard sales is up. Last month there were 34 REO’s, down from 64 a year ago, and 27 Short Sales, down from 35 a year ago. In contrast there were 20 Standard sales, up from 15 a year ago. It appears that the excessive inventory of low-priced distressed properties is being absorbed, which is good news for the Murrieta housing market as it suggests that home prices will remain stable. However, the number of REO’s and Short Sales still outnumber Standard sales by a factor of 3-to-1. So while condo and townhome prices are remaining stable, odds are we won’t see any significant increases in home values until the distressed property inventory is finally absorbed.
*The values shown for each month are based on data measured during the prior 90 days of activity. For example, values shown for August 2011 are based on data measured from the beginning of June 2011 through the end of August 2011. The information provided is deemed reliable, but is not guaranteed.
Copyright ©2011 Bill Burchard