January is traditionally one of the slower months of the year for selling real estate in San Jacinto CA. In an effort to document what is taking place in the Hemet San Jacinto Valley, I have started a series of monthly market reports, showing the overall condition of the current market and referencing to the year prior.
It should be noted that the data I have chosen to analyze comes exclusively from the Tempo SoCalMLS system which is the MLS used exclusively by the Hemet San Jacinto Association of REALTORS® (HSJAOR). Most agents from outside our unique market area belong to the MRMLS, a competitor MLS system that does not post to the local market data. Yes, there are other sales that can be found from other sources – but at the end of the day, it is all going to average out to about the same. So, just bear in mind that the data is limited but it comes from the best local source we have – the HSJAOR.
As I started, January is a slow month for real estate sales in San Jacinto. In 2007 there were only 18 residential properties that closed escrow and in 2008, January had 50% less sales with 9.
Since San Jacinto has experienced such a large influx of new construction over the past few years, it should be pointed out that the homes being reported in the MLS are getting larger – so the sold price is not the only criteria you should consider, when looking at market data.
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For example, in January 2007 the average size home was 1628 square feet of living space with its 3 bedrooms 2 and a quarter baths. By February 2008, the average home sold in San Jacinto increased to 2101 square feet and grew by an entire bedroom to 4 and an additional quarter bath bringing the average bath size to 2.5.
Unfortunately, the added size did not help the selling price much. The AVERAGE LIST PRICE of a home in San Jacinto, CA dipped from $305,316 to only $247,355. Even the largest home sold in January was a big difference. Although both years show a 5 bedroom 3 bath home selling, the one in 2007 was 3102 square feet and the one ion 2008 increased its size 5.54% to 3,274 sq ft.
The AVERAGE LIST PRICE per SQUARE FOOT (LP/SqFt) dropped from the January 2007 amount of $196 per sq ft down 36.22% to a mere $125 per sq ft. The LP/SqFt took an even bigger hit, despite its increased size; dropping 44.33% from $282 per Sq Ft down to $157 per Sq Ft.
Looking at what really matters, the SOLD PRICE does not improve the picture. In January 2007 the AVERAGE SOLD PRICE for a home in San Jacinto was $299,438. A year later, in January 2008 the MLS reports the AVERAGE SOLD PRICE for a home in San Jacinto was only $237,544. Again, it appears the bigger the home the bigger the beating. The largest home sold in San Jacinto in January 2007 was sold for $434,900 compared to the larger home that sold in January 2008 for only $325,000. The horror story continues when looking at the SELLING PRICE per SQUARE FOOT (SP/SqFt) for these large homes. The highest SP/SqFt reported in January 2007 was $277 and in January 2008 it tanked at only $148 – a dip of 46.57%. Most importantly, the AVERAGE SP/SqFt took the elevator $72 down from $192 per Sq Ft to $120 a Sq Ft or a 37.5% decrease in value per square foot of a home in San Jacinto, California.
The longer a home sits on the market, the more likely it will be reduced in price. The data I use to analyze the market reports the LIST PRICE as the LIST PIECE when an offer is accepted. A number to consider when looking at the overall condition of the market is the ORIGINAL LIST PRICE (OLP) and how that compares to the final SOLD PRICE. In comparing the OLP to the SP (SP/OLP) January 2007 saw a difference in value of 6% whereas the difference in January 2008 increased 5% to 11%.
DAYS ON MARKET (DOM) are another number that must be taken into consideration when analyzing conditions in a real estate market. The report I looked at does not show great concern here – and I’m not sure why, other than the fact that there are so few home to put into the mix, that any deviation has a significant impact on the overall numbers. In January 2007 the AVERAGE DOM was 70 days which only increased 8 days or 11.43% to 78 DOM. To contrast the longest DOM in January 2007 the longest barely reached 6 months with 181 DOM where in January 2008 the home that sat on the market before it finally sold was there 76 days longer at 257 DOM – or an increase in marketing time of 41.99%.
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