A Look at Our Market From Last Year to Now


What is going on in our local Southern California real estate market? Let’s go over the numbers and how things compare to what we saw last year.

Today I’ve got a market update from the first half of 2017 regarding some of our local areas. 

To give you an idea of what’s been going on, I’ll be comparing what we’ve seen this year with what things looked like in 2016. The first piece of good news is that more homes have sold this year than last year and 2015 both. 

We’ve also seen a healthy increase in home values, as well as a decrease in the number of days homes are typically spending on the market. 

But, let’s take a look at some more specific numbers so that we can get a better idea of how things have changed. In 2015, the average sales price was roughly $413,000. That number increased in 2016 to $442,000, and this year, prices have risen again. As of June of 2017, the average sales price was $472,000. This is a roughly $30,000 increase each year.

Appreciation between 2015 and 2016 was approximately 7%, and from 2016 to 2017 it was 6.75%. So how does this affect your investment? Most people using a conventional loan will put down approximately 20%, and those going the route of an FHA loan will put down about 3.5%. In today’s market, that down payment can relate to a lot of leverage in relation to appreciation. If we consider a down payment of 3.5% in relation to a 7% increase in terms of appreciation, the result is a 210% increase on your investment. 

For an investor who usually puts 25% down payment, it is a 1 to 4 leverage. Because of inflation and appreciation rates, an ideal investment will see as much as a 33% return. 

So, what numbers are important to know for specific markets in our area? Starting to the east, the city of Rancho Cucamonga has experienced a hefty appreciation of 8.4% compared to last year. Another notable statistic is that the average number of days on market has decreased from 54 in 2016 to 29 this year. The number of homes sold, though, has increased. In 2016, 1,271 homes sold compared to the 1,331 this year. 

It’s a good time to purchase and a great time to sell.

In Chino Hills, home appreciation is at 6.4% average between this year and last. Days on market have dropped in that area, as well. This is a pattern we’re largely seeing across the board. Chino Hills homes have gone from spending an average of 58 days on market in 2016 to an average of 43 days in 2017. The number of homes sold has increased, as well. 671 homes sold between January and June of 2016, whereas 750 homes sold in 2017 between those same months. 

When we look at the more mature city of Alhambra, this pattern continues. Like other nearby areas, this city is seeing an increase in value. There, the appreciation between 2016 and 2017 has been 6.4%. As is the case elsewhere, the number of homes sold also increased in the last year—going from 316 to 331 homes. Also, again, days on market have gone down. Last year, the average was 48 days. This year, that number is 44 days. 

So, what do all of these numbers mean for you? If you are looking to sell, you have a great opportunity now to do so. If you price it correctly, your home should move fairly quickly off the market. Buyers, too, can take advantage of the market. However, buyers will need to act quickly and be ready to make decisions. Additionally, mortgage rates are still at all-time lows. 

It’s a good time to purchase and a great time to sell.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

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