Southern Cal Real Estate Numbers for March: Another Crazy Month!!

Filed under: Market Comentary

Every month, we get a real estate report – click here if you want to download the full report. Most of these comparisons are year-over-year, and the numbers are getting crazier with time. This month in particular is odd because a year ago (March) was when the economy was shutting down with COVID.

Average Home Prices

It’s interesting to see how the average home price in March 2021 was $516,500 in the greater Temecula area. Remember that these averages can be a bit wonky – it disproportionately changes depending on how many higher-priced homes are selling. The crazy thing is that it’s an 18.5% increase compared to last year.

My understanding is that actual appreciation is probably in the 12 – 14% range.

Inventory Levels

Anyone in the market buying or selling right now is probably feeling this next point: we’re at an all-time record low for average inventory. We are under 1 month of inventory. Compare this to the normal, which is 4 – 6 months, and you can see why everything is selling so quickly.

What does low inventory lead to? All the houses sold for an average of 2% over the list price of the property. It continues to be a market that is going crazy.

Deals are Happening – At an Increased Speed

One thing that always jumps out at me is how everyone is talking about how there is no inventory. It’s obviously a problem. But it’s also important to point out that it isn’t due to a lack of deals happening. The number of deals happening this year is out-pacing last year, which out-paced the year before. There are a lot of transactions going on – it’s just that they are happening so dang fast.

When Will the Market Change?

Read the full report to see all the numbers. It’s interesting to see how everything continues to hum along, despite the economic challenges we have been facing. Now many of us are asking: what is going to be the catalyst that slows this down? There are conversations to be had around this topic. The smart people that I’m listening to are saying they think this trend will continue for another 1, 2, or even 3 years based on the metrics.

If you’re thinking about jumping into the market by selling or buying a home, then I’m always here to support. Let’s talk about your mortgage options!

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