No doubt the current market conditions have changed in nearly every real estate market across the country. In Hemet, CA, we have seen dramatic transformations over a year earlier, which is why it is so important to properly understand the value of a home in today’s market – whether you are trying to buy or sell an REO (Real Estate Owned – bank owned homes) or other property.
(The figures reported here only represent the data supplied by the local Hemet San Jacinto Association of REALTORS® - HSJAOR - on the local SoCalMLS and do not reflect the properties that were listed in a neighboring MLS – IMRMLS. The IMRMLS is used throughout South West Riverside County by Riverside County and San Bernardino County real estate agents from in the Inland Empire, in Southern California, who are not an actual part of the Hemet – San Jacinto market.)
We have seen home buyers slowly getting off the fence in the last month or so, with many of the best priced homes receiving multiple offers, over asking price – sending them into escrow. There are a handful of cash investors taking advantage of the low entry point of Hemet investment homes for sale as well as first time buyers taking advantage of the down-payment assistance programs that cleared major legal hurdles in March of 2008.
To look back to February, 2005 the market price points were very similar to what they are today. The difference, of course, they were on the way up in 2005 and n 2008 they are going back down.
In February 2005, there were 161 new listings in the SoCalMLS. The average asking price was $294,296. That same month saw 99 homes for sale close escrow for an average asking price of $257,973.
By February 2006, there must have been a lot of excitement in the air as 195 Hemet homeowners put their homes up for sale in the SoCalMLS, asking $322,140, on overage. The actual numbers of homes sold during the month of February 2006 slipped to 87. The good news is the average sold price reached it’s highest ever for a February: $302,941.
Then in February 2007, just as many Hemet home sellers put their home on the market, with 195 new entries on the SoCalMLS and the asking price increased to $339,820. However, the number that actually closed escrow continued to decline to 64 with a shrinking sale price of $300,059.
As a point of reference, February 2007 was the last complete month where sub-prime mortgages were offered. The first signs of collapse did not appear until March 10th, 2007 when New Century funded its last loan before shutting its doors.
In February 2008, the grim reality of the current real estate market is more than obvious. First, there were only 136 new listings added to our inventory – most of which were either short sale listings or REO’s. The average asking price was the lowest it’s been since before February, 2005 (the earliest point of data that I have easy access to). Sadly, only 26 homes closed escrow in Hemet, CA in February 2008, for an average sold price of $268,730.
I hope you have found this collection of data and my analysis to be helpful in seeing just what has taken place and what is taking place in the current real estate market in Hemet CA. It is my goal to update this column each month as the year unfolds, so please check back for more useful information.
Blessings to all who read this,
John Occhi, REALTOR®
Century 21 Crest - CrestREO
Hemet - San Jacinto Valley
Author of "What You Need to Know...About Foreclosure and How You Can Stop It!" - If you are a Hemet or San Jacinto Homeowner.
This blog and the contents written here is the intellectual property of John Occhi, Hemet California REALTOR®. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.
This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.
I am proud to be a full time REALTOR® with Century 21 Crest and the CrestREO Division who is proud to be a contributing
Until Next Time, Have a Blessed Day,
John Occhi, ePRO, REALTOR®
DRE Lic No: 01444168
This blog and the contents written here is the intellectual property of John Occhi, Temecula - Murrieta, CA REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.
I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.