Analysis of the Hemet REAL ESTATE MARKET Part 1 - New Listings
By John Occhi, Hemet REALTOR®
Hemet CA REAL ESTATE
I just wrote an article on the importance of studying the local real estate market and becoming familiar with the numbers that move the market. This article is my analysis of the local Hemet California Real Estate market based on the information found in the Tempo MLS, used by the Hemet-San Jacinto Association of REALTORS (HSJAOR).
My data is all residential property reported to the TEMPO MLS. I will analysis the data over the past two years. and I will be looking specifically at two different numbers.
First, I will look at the number of property that came on the market each month, for sale then I will look at the average list price for each month, comparing the 2006 figure to the 2005 figure and trying to interpret the current trend.
JANUARY
2005 176 New Listings Average Asking Price: $284,513
2006 244 New Listings Average Asking Price: $330,717
The additional 68 listings that came on the market in 2006 are a definite indicator that people want to "get out" of investment property. It was about this time that we started to see a large influx of people trying to cash out their real estate at what they thought was the ‘top of the market' Sellers are so bold they are asking, on average $46,204 more than they did just a year earlier when the market was HOT! This is over a 16% increase in asking price in just one year.
FEBRUARY
2005 161 New Listings Average Asking Price: $293,613
2006 194 New Listings Average Asking Price: $334,443
33 more properties (20% increase) came on the market in 2006 and the asking price increases by $40,830 (10.5% increase). The sellers want to move their properties for top dollar.
MARCH
2005 206 New Listings Average Asking Price: $313,834
2006 235 New Listings Average Asking Price: $346,458
Another 29 property increase, over the same period a year earlier, for homes coming on the real estate market for sale with an increase in asking price in the double digit percentage over the prior year - asking an additional 10.5% or $32,609 more than a year earlier.
APRIL
2005 206 New Listings Average Asking Price: $304,644
2006 255 New Listings Average Asking Price: $397,921
April is the traditional beginning of the Spring Selling Season. Most homes are on the market by the first of April yet we saw another dramatic increase of homes going on the marketing April, 2006 with 49 more than April, 2005 - or a 24% increase in inventory going on the Hemet Real Estate market, for sale. What was even more dramatic than the numbers of home being offered for sale is the amount the seller is asking - an increase of close to a hundred thousand dollars! Actually, it's an increase in asking price of $93,277 or over 30% more in asking price than just one year earlier. This marks the record for the highest average asking price for Hemet CA homes for sale.
MAY
2005 217 New Listings Average Asking Price: $306,751
2006 244 New Listings Average Asking Price: $345,423
By May, the peak selling season is in full swing and anyone who has thought of selling their home is jumping on the bandwagon. Although the numbers represent 11 fewer homes than a month earlier, there are 27more homes for sale (11% increase) in Hemet CA than a year earlier and the asking price is still $38,672 higher (12.5% increase)than sellers were asking in 2005.
JUNE
2005 225 New Listings Average Asking Price: $332,779
2006 242 New Listings Average Asking Price: $356,342
In June 2006 we started to see some leveling in the homes coming on the Hemet Real Estate market. There was less than an 8% increase in the new listings (17 homes) and only a 7% increase in asking price ($23,563 higher asking price - the lowest increase all year, both in percentage and actual dollars)
JULY
2005 223 New Listings Average Asking Price: $340,614
2006 237 New Listings Average Asking Price: $339,952
By the summer, the Hemet CA Real Estate market has nearly flattened itself in comparison to a year prior. We see 5 fewer listings (2% decrease) coming on the market than a month earlier and only 14 more (6% increase) than a year prior. The real news about July 2005 is the first time we have seen a decrease in the asking price of new homes coming on the Hemet Real Estate market, for sale, through the MLS. The asking price decreased by $662 (less than 2% increase) over the year prior and $16,390 (5% decrease) over the prior month. This is the lowest asking price since February, 2006 and we are supposed to be in full swing of the summer selling season.
AUGUST
2005 234 New Listings Average Asking Price: $340,643
2006 255 New Listings Average Asking Price: $338,218
August 2006 sees 21(9% increase) more listings than a year earlier and 18 (8% increase) more than a month earlier, however the asking value continues to decline, dropping another $2,425 (less than a 1% drop in value) off of the asking price
SEPTEMBER
2005 257 New Listings Average Asking Price: $333,468
2006 199 New Listings Average Asking Price: $354,377
By September 2006, any serious seller knew they had better already be on the market if they wanted to sell. 2006 saw the first decrease in the number of listings over the same period a year earlier, dropping 22% of the new listings (58 fewer listings than the same time a year earlier). The saving grace for the month is that it reversed the pattern of decreases in the asking price by increasing it nearly 7%, or $20,909 over the same period a year ago.
OCTOBER
2005 215 New Listings Average Asking Price: $328,349
2006 190 New Listings Average Asking Price: $329,787
October 2006 continued the pattern of decreasing the number of new listings over the same period a year earlier, dropping 25 (over 11% drop) listings and the first time since February 2006 there were less than 200 homes that came on the Hemet Real Estate market for sale. The asking price was very stable to a year earlier, with the asking price only increasing by $1,434 or less than ½ of 1%.
NOVEMBER
2005 177 New Listings Average Asking Price: $342,000
2006 189 New Listings Average Asking Price: $354,342
November 2006 is the first month since July that has seen an increase in both the number of new listings and the asking price of the new listings over the same period in 2005. 12 Additional listings (7% increase) were posted to the MLS over 2005 and for an increase in asking value of $2,342 (3.5% increase).
DECEMBER
2005 129 New Listings Average Asking Price: $332,858
2006 107 New Listings Average Asking Price: $359,855
December is back to offering less homes for sale (the lowest number in the 2 years analyzed here). 17% fewer homes (22 fewer) came on the market in December 2006 than a year prior. The asking price on the MLS did increase by $26,997 (8% increase).
With this information you can take a glimpse into the crystal ball and make your own conclusions as to what will happen in the 2007 year with Hemet Real Estate. There are no hard facts - nothing but opinion and everyone has an opinion when you start talking about Real Estate in Hemet. So, use the facts to form your opinion any you will be better informed if you want to buy or sell real estate in the Hemet San Jacinto Valley. Look for my next article, where I will build on this data and integrate information on the homes that have actually SOLD in Hemet, over the past two years.
Until then, Have a Blessed Day,
John Occhi, Hemet REALTOR
www.JohnOcchi.Com
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