Is anyone surprised about the latest real estate sales trends in Temecula-Murrieta?
Follow the bouncing ball—real estate trends in Temecula Valley continue their upwards direction. Prices had peaked in July and were actually retreating in August, while inventory started to increase. This has reversed itself as the September numbers have come through—with average price of closed sales in the Temecula-Murrieta area hit new highs of over $381,000.
Click here to see the latest trends in active listings and average closed sales prices for Temecula-Murrieta.
The broader Southwest Riverside county area, showing total sales over the past four years, also reflects similar trends. See the total sales trends here.
A big factor in the decrease of available inventory, which has resulted in a run-up in home prices in the Temecula Valley over the past year, can be seen in the 4-year trends in REO Sales and Short Sales. Inventory levels of available listings in these categories continue to plummet as more and more homeowners reach potential sales prices that allow them to successfully market their properties.
The big question is: where do we go from here? As long as inventory levels remain as low as are, it will continue to be a seller’s market. Without a supply of distressed homes, prices must continue to increase until more sellers are encouraged to enter the market place, thus providing more choices for buyers.
The “feel” of the local market in Temecula-Murrieta is that there are fewer multiple offer situations, more choice for buyers, and much more of a balanced market condition. But the statistics do not necessarily reflect that.
The converse to getting to a balanced market situation would be that, instead of more sellers, fewer buyers. We are certainly seeing less investment activity because of elevated prices, which is reducing demand. On the other hand, more buyers are coming out of mandatory waiting periods because of past short sales/foreclosures, and more sellers are either move-up or down-sizing buyers, instead of the one-sided transactions that resulted in the purchase of a short sale or foreclosure.
What do you think is the future direction of the real estate market in Temecula-Murrieta?