This month’s report contains some new information that I have been working on and am excited to share with all of you. It’s no secret that housing inventory is extremely low and is a contributing factor to a robust seller’s market and a competitive buyer’s market. This report is based on resale homes, and our local MLS provides all information. I have referenced a few times already that our region is continuing to build new homes, and this month I’m happy to share those numbers with you!
I reached out to our local cities and asked them two questions: How many single-family (SFR) units are currently under construction? How many units are planned/approved for construction in the next couple of years?
The first question is pretty straightforward. Our region currently has 2,232 units under construction! The second question is a little bit trickier. First, I’ll remind you that cities don’t build houses. So, just because a project is planned/approved, the city can’t guarantee it will be built within a specific timeframe. So, these numbers are a little more fluid, but I’m happy to report an estimated 11,362 units are slated for construction soon! This will help with newly constructed inventory and opportunities for current homeowners to sell their home to buy up or down, opening resale inventory. A report containing the breakdown for each city is included later in this report.
The median home price in Southwest Riverside County dropped 3% from a month ago ($535,000/$550,000) but was up 19% from a year ago ($450,000) and up 37.4% from 2 years ago ($389,450). Unsold inventory is still hovering near 2 months (6 months is considered a healthy market), and days on market crept up again now to 8 days, up from 6 days last year but still significantly lower compared to 27 days 2 years ago. Unit sales are up 3% from the previous month down and 9% from last year. Inventory dipped slightly by 2% from last month but is still up 29% from last year. As I reported last month, while the market is cooling a bit, Southwest Riverside County is still presenting solid numbers across the region. Median prices are up across the board, ranging in an increased range of 6.2%-30.5% Year-Over-Year, and the volume of transactions also increased by over $25 million.
The Governor is in the final days of signing or vetoing bills, and we have a few housing bills that we have been watching closely. I’ll report on those in a future report.
If you’d like a copy of my entire report, or to be added to the distribution list, please email me at Adam@srcar.org.
As always, I am available if you have any questions about the report. Until next month…
