Hold up - Temecula real estate isn't tanking?

Now that “shelter in place” restrictions are lifting around the state of California, I am very excited to see what 2020 will reveal for Temecula real estate.

The data doesn’t show any signs of a slowing market and prices continued to increase year over year. Multiple offer situations happen daily and homes are selling fast.

In March of this year, we saw many homeowners and buyers take a breather from the hottest market SoCal has seen in over a decade…not because they wanted to, but because many of them had to. “Shelter in Place” raised too many questions about how to handle showings safely and many people just weren’t ready to venture out.

Despite the pandemic, we saw an increase in Temecula homes’ median sales price from March 2020 going into April 2020, from $500,000 up to $520,000 for single family detached homes. To put a little more perspective on those numbers, March 2019 median sales price was $474,900 and April 2019 went up to $485,000. Those are significant increases year over year.

Interest rates are currently hovering around 3.15%-4% for May/June depending on who you take out your mortgage with and the type of financing you are qualified for. In March 2020, rates were around 3.84% and many people were refinancing as well as purchasing a home which had the lending industry booming.

Fast forward to record unemployment In April and epic stock uncertainty - we saw fluctuation in rates as lenders and banks tried to make sense of the state of the economy - and reduce their risk. Loans became more difficult to obtain and sadly, some buyers fell out of escrow due to losing their jobs which fueled lending difficulties.

BUT, many folks still had jobs as essential workers and some buyers were able to work remotely which helped drive the housing market. These qualified buyers continued to look for and buy the few homes that were available.

Statisctially, when we look at the median Days on Market (or DOM), March 2020 was at 12 days and April 2020 was at 10!!! Let’s quickly compare to the previous year: March 2019 was 34, April 2019 was 24…say what??? Yes, you are reading this right - during the pandemic, houses are selling FASTER and for MORE MONEY. But, how??

I have some insight on how this is happening based on what I am experiencing with current clients and what the data can show us.

Local homeowners turned to real estate agents who could market their home virtually with 3D tours, PPE (personal protective equipment) protocol in place, and limiting the amount of people to enter a home at one time. With motivated sellers, active buyers were able to view homes virtually and get an offer in to the seller. These precautions and marketing strategies have allowed many buyers who were seriously looking for a home to filter through their virtual tours online and be able to choose to see in person only the homes they love. (If you want to know more about these proactive steps to protect yourself, click here to message me.)

Sellers who needed to sell or wanted to relocate were able to do so safely because of virtual transactions.

Let’s also not forget to mention the lack of inventory. Without enough homes to sell to the buyers who are well qualified and ready to move, we find ourselves in multiple offer situations on listed homes which drive the purchase price up - garnering a homeowner higher than list price offers. With fewer than 2 months of inventory on the market in March and even less in April, buyers were clamoring for homes.

Fast forward a bit, and we saw an increase of homes on the market in May which is to be expected as we enter the summer season, but still roughly only 2 months of inventory (301 active homes in Temecula).

May 2020 saw a slight dip in the median sales price to $508,000 in Temecula and higher days on market than April of 18 which is most likely due to the slight increase of inventory for the month. With more options for buyers to choose from we will see a little more balance…BUT, still a sellers market.

We need more listings to meet the demand!

June 2020 is proving to be an exciting month so far. School is technically out for summer so families are ready to take on their move. Many people around the area are “back to normal” in a lot of ways and I am seeing an increase in the activity in the market which I believe will fuel the recovery for our economy for many.

If you have any questions about your neighborhood specifically, please reach out to me at christen@christenartino.com. I think we are about to see amazing numbers and activity, even with record unemployment numbers. I think 2020 will be an incredible year for real estate.

If you are thinking about selling your home and have questions about market value, virtual marketing, and selling safely in the current climate, contact me here.

Thank you for being here!

~Christen

How has the Coronavirus impacted our real estate market?

Maybe you're curious to know, how has the Coronavirus impacted our Real Estate market?  

Homes are still selling!  Interest rates are exceptionally low!

New homes come to the market every day, while some sellers have decided or may decide to cancel their listings.  It is about what they feel is right for them.  

Some buyers have canceled their escrows and wait to see how the future will unfold - but this is not the case for every home. As a seller this may make you think it's not a good time to sell because buyers are not active, when in truth, inventory is very very low and serious buyers are still abundant and we're in multiple offer situations as much as past weeks.  

Some buyers who have not opened escrow on a home are waiting it out and delaying showings.  Some are keeping an eye on their stocks etc. as there have been many new developments and fluctuations with their investments and they may have been depending on those funds to purchase a home.

SHOWINGS:  Showings are still completely possible through a variety of formats.  Some buyers are having their agents use FaceTime or video recordings to provide a walk through so they don't actually need to visit the home right away.  

 And then there are buyers who are still actively looking in person, viewing homes with their agent.  

VIRTUAL AND ELECTRONIC SERVICES:  As many of you know, most of your real estate documentation can be completed electronically through e-signings and virtual presentations.  There are some things that DO happen in person such as inspections and deed signing with a notary, but when it comes to signing certain contract/disclosure items and viewing homes, we can help keep most of it virtual if that is a client's preference on either side of the transaction.  

ESCROW:  Some delays may be the new normal as certain items that require in person signings may not be feasible with certain travel restrictions.  This does not mean the sale stops, it just means we have a little bit of a wait.  

 Loan time may also cause delays as processors the first week of March were flooded by pre-qualification and refi requests when rates hit an all-time low. Their reaching capacity is one of the reasons rates have slightly increased but once orders level out we very well may see another decrease.

 Some contingency periods could be extended if inspections and loan underwriting cannot happen within their contractual deadlines. (Although, we're largely still closing escrows in the expected 30 day period).

OPEN HOUSES:  Don't be surprised to hear agents asking all visitors if they have any cold symptoms or have traveled out of the area.  You will likely encounter hand sanitizers, wipes, gloves, etc. to protect yourselves as well as the homeowners.  You may be required to tour the home in small groups with your family or partners and wait while others finish to keep a safe amount of distance between each other. 

 As a seller, don't be surprised if your agent asks you to express your open house wishes in writing for their records. 

 This is evolving daily, so open houses could stop in our local area depending on government and local authority’s suggestions, or they may be allowed to continue (at the seller's discretion), time will tell.  

IF YOU HAVE COLD SYMPTOMS:  Please stay home.  

As always, If you have any questions, please reach out to me.  New developments occur daily and ensuring you stay educated to help you make informed decisions while staying safe and comfortable is important to me.  

We are in this together.  

~Christen

4 Reasons Why Selling in the Winter Works to Your Advantage

Contrary to popular misconceptions…winter is NOT the worst time of year to sell your home.

In fact, most home buyers who are actively looking for a home during the holiday season in the winter are the most motivated and determined buyers of the year.

Below are four compelling reasons to list your house this winter:

1. Demand Is Strong

The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains strong throughout the vast majority of the country. Buyers are ready, willing, and able to purchase, and are in the market right now. More often than not,
in many areas of the country, multiple buyers are competing with each other to buy the same home.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Inventory is still under the 6-month supply needed for a normal housing market. This means in the majority of the country, there are not enough homes for sale to satisfy the number of interested buyers.

Historically, a homeowner would stay an average of six years in his or her home. Since 2011, that number has hovered between nine and ten years. There is a pent-up desire for many homeowners to move since they were unable to sell over the last few years due to negative equity situations. As home values continue to appreciate and homeowner equity grows, more and more homeowners will be given the freedom to move.

Many homeowners were reluctant to list their homes over the last couple of years, for fear they would not find a home to move into. That's all changing now as more homes come to market at the higher end. The choices buyers have will continue to increase with new construction, too. Don’t wait until additional inventory comes to market this spring.

3. Buyers Are Serious At This Time of Year

Traditionally, homeowners think about spring as a great time to list their homes, when more buyer traffic may be out there actively searching. In the winter, however, the buyers who are seeking a home – whether for relocation purposes or otherwise – are serious ones. They’re ready to make offers and they’re eager to move, often quickly. Your house may be exactly what they’re looking for, so listing now while other potential sellers are holding off may be your best opportunity to shine.

4. There May Never Be a Better Time to Move Up

If your next move will be into the premium or luxury market, now is a great time to move up. There is currently ample inventory for sale at higher price ranges. This means if you're planning on selling a starter or trade-up home and moving into your dream home, you’ll be able to do that now. Demand for your entry-level or middle-tier home is high, and inventory in the luxury or premium market is too.

According to CoreLogic, prices are projected to appreciate by 5.6% over the next year. If you’re moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and in your mortgage) if you wait.

Bottom Line

Selling your house and moving up sooner rather than later could lead to substantial savings and may end up being your best option in the current market.

April 2019 Temecula and Murrieta Happenings and Events

If you are new to the Temecula and Murrieta area and are looking for some events to attend, maybe Easter egg Hunts, check this out!

The City of Temecula works hard to bring the community together and provide a fun, safe, and family oriented atmosphere to the our city. If you are curious about more adult themed events or are interested in the wineries, you can enjoy a glass of wine and listen to live music at Avensole, Callaway, Cougar, Europa, Fazelli’s, Lorimar, Masia de la Vinya, Miramonte, Renzoni’s, and Wilson Creek. Be sure to check the winery website prior to your visit to ensure music will be playing when you want to go.

Old Town Temecula also has live music venues at Baileys, Crush&Brew, Devilicious, Gambling Cowboy, Luke’s, Old Town Blues Club, Public House, Temecula Wine and Beer Garden, and The Bank.

If you happen to visit the Old Town Farmers Market, go check out the gentleman making the crépes…you won’t be disappointed! One crépe will fill you for almost the entire day and they are incredibly delicious, very authentic, and so much fun to watch being prepared.

If this month has you inspired to plant new flowers or veggies in your garden, the Farmers Markets have a great selection at the BEST prices I can find for veggies and fruits for your garden. Some as low as $1-$2 each!

Curby’s Nursery is one of my favorite local nursery’s. They are knowledgeable, helpful, and have a wonderful selection of colorful flowers, succulents, palms, citrus, and drought tolerant plants for your yard. If you are trying your hand at some indoor plants to add to your decor, they also carry fiddle leaf fig trees and I recommend checking them out. They are located at 31900 Cll Chapos, Temecula, CA 92591.

Have a wonderful April!

-Christen

Temecula and Murrieta Market Update, March 2019

I am seeing some great activity within the Southern California real estate market and am excited to announce that interest rates are still very low...and would you believe me if I told you they actually dropped???  

Check out this artice I received from a lender resource this week, Cooler home spring buying market? Not necessarily with rates now at 12-month lows.

With rates staying low and home prices slashed by some sellers who have been hanging around on the market since listing in the fall, I believe it's a great time to buy a home.  I think many buyers have caught onto the price reductions and lower interest rates, and will continue to drive sales.

Temecula's Closed Sales Update 

4+ bedroom home sales increased from 60 units in January to 65 in February

3 bedroom home sales closed units increased slightly from 35 to 37 January to February 

We see a very large increase of average sales price in 3 bedroom detached homes in Temecula from January's $417,562 to February's $493,292!!!

 4+ bedroom detached homes saw an average sales price decrease though, from January's $607,813 to February's $563,615.  

Murrieta's Closed Sales Update

Murrieta is going to be where we will notice significantly more activity.  We see an increase in closed sales in all of Murrieta's 4+ bedroom detached homes jump from January's 61 units to February's 86 units!  

3 bedroom detached homes closed in Murrieta rise from January's 26 units to February's 37!!!  An increase of 25 more homes! 

Average sales price for Murrieta's 3 bedroom homes grew exponentially in 92562:

92562 in January: $369,154 to $421,121 in February

92563 in January: $391,515 to $401,479 in February

Sales price averages for Murrieta's 4+ bedroom homes saw a decline along with Temecula, from:

zip 92562 in January: $597,528  to  February: $554,915

zip 92563 in January: $458,313  to  February: $452,338

DOM (Days On Market)

Temecula 3 bedroom homes were at 41 DOM in January and increased to 58 in February

Temecula 4+ bedroom homes DOM have remain unchanged between January and February at an average of 65 days.

Murrieta DOM:

92562 DOM for 3 bedroom homes was 47 in January and increased slightly to 53 in February

92563 DOM for 3 bedroom homes in January was at 49 and jumped quite a bit to 74 in February.

92562 DOM for 4+ bedroom homes in January was 81 and then dropped to 71 in February.

92563 DOM for 4+ bedroom homes in January was 75 and then dropped to 63 in February.

3 bedroom homes have taken the lead in both Temecula and Murrieta

Even though we see the 4+ bedroom prices decreasing the last few months, we should remember that many of these homes have had price reductions after having been listed in the fall and are trying to chase after home buyers when the interest rates increased.  Many homes are being re-listed after having now expired, and are re-listing at their original prices.  I don't know the future, but I believe we might yet see prices increase over the next month or two in that 4+ bedroom bracket as sellers and new home sellers ask higher prices and buyers moving to buy while interest rates are low.

Please share this with anyone you know who may be thinking about selling their home or getting into the market to buy one.

I am also sending out specific area updates to clients in Orange County and San Diego.  If you feel that those areas would interest you, please send me an email and I will be sure to add you in to the interest list.

A look at the Temecula Real Estate Market, February 2019

I am definitely excited to announce that I am seeing an improving market as opposed to the lackluster fall we just experienced! I'm seeing homes going under contract relatively FAST compared to the last 4 months.

In December, the average sales price for a single family, detached, 4+ bedroom home was $542,282.

In January, that same criteria of home had an average sales price of $607,813.

(I did not use square footage as a factor)

If we look at the days on market or DOM, we can see an increase from December to January from 55 days to 65 days for the 4+ bedroom homes which is not as great news for those homeowners waiting on buyers.

Conversely, DOM for 3 bedroom, single family homes decreased from 52 DOM in December to 41 days in January...and I'm seeing that trend continuing as recently listed homes in all categories are going under contract in 1, 2, 3 days and within 2 weeks is showing me there is positive movement for home sellers again...with shorter wait periods.

...BUT, the prices dropped a little bit in the month of January for the average sales price for 3 bedroom, single family, detached homes in Temecula from $429,081 to $417,562 in January.

Since January 2018:

Temecula average sales price for ALL styles of homes (attached/detached, all sizes) have increased +1.3%.

4+ bedroom detached homes average sales price increased +5.7%

3 bedroom deatched homes average sales price decreased -7.5%

Technically, due to our months of inventory hovering at 3.2 for January for 4+ bedroom homes and 2.7 for 3 bedroom homes, we are still in a seller's market using this psychology. We have certainly increased inventory since January 2018 when we started out with only 1.8 months supply for 4+ bedroom homes, and 1.1 month for 3 bedroom homes!

Tip: Months of inventory means that if no new homes came onto the market, it would take that much time to sell all of the available houses before no more homes would be available...smaller months of inventory means a market that favors sellers - more months of inventory means the market favors buyers.

Also, if you are curious about when these homeowners sold their homes in 2018 for peak prices, those months were March, May and October for our 4+ bedroom segment of homes. If you owned a 3 bedroom home, those months for peak prices were February, March, June and September.

As you can tell, there is definitely some good news out there in our markets as we are heating up for spring.

If you have any specific questions about statistics, please feel free to reach out to me, I am always happy to help!

If there is anyone you know that you feel could benefit from this info, please feel free to forward it along!

Thanks for checking this out, I hope you have an awesome weekend!