Market Conditions: January 2008 – Hemet, CA

The downturn in the local real estate market has been dramatic in Hemet CA.  The good numbers are down and the bad ones are up.

In January, 2007 the SoCalMLS reports 57 closed residential sales with an average price of $307,936.  January 2008 saw a report with a sharp decline in both the number of closed real estate transactions as well as the value of the sales.

January 2008 only has 26 residential properties that closed escrow for an average value of $250,073.  The Hemet, CA real estate market suffered a 52% drop in close escrows and am 18.79% reduction in value over the past year.

The dollar per square foot of sold listings (SP/SqFt) also suffer a dramatic slice in value from January 2007 until January 2008 where the SP/SqFt dipped on average from $189 per sq ft to only $132 a sq ft or a 30.16% reduction in the SP/SqFt.

It should be no surprise that the correlation between the listing price and sold price has also dramatically changed.  Bear in mind that the ‘List Price’ is the amount a Hemet home for sale is listed for when an offer is accepted and an escrow is opened.  This number does not take price reductions into account.

In January 2007, the average list price at the time of sale was $312,944; asking $193, on average, per square foot of Hemet CA living space.  The difference between the asking price and the Sold Price in January 2007 was 97%, on average.

January, 2008 saw the List Price drop down 16.93% down to $261,202 with an asking price 27.98% less, at only an average of $139 per square foot.  January 2008 saw an even deeper cut in the difference of Sold Price to List Price (SP/LP) at 95%.

It is also about a month longer to sell a home in Hemet CA in January 2008 with 105 being the average number of days on market (DOM), compared to the 77 it took just a year earlier – or 36.36% longer.