I’d like to wish you all a very Happy New Year and welcome to 2023! I’d also like to congratulate all of our newly elected officials and newly appointed Mayors. I look forward to working with you all to continue to keep housing a priority and a successful part of our local economy.
Speaking of newly elected officials, the adopted district maps are now in place, and many of you might have a new County, State, or Federal representative. To make it easier for you, I am attaching a chart showing who the representative is in our local cities. I hope you find it helpful and encourage you to get to know the people representing you!
2022 ended just about how many economists predicted earlier in the year…a little slower, with prices flattening or decreasing slightly. Sales and volume were narrowly up from November, which was one of the slowest months on record since I started this report. I still believe interest rates play a significant role in these figures as higher interest rates decrease purchasing power. Additionally, sellers are less motivated to sell when they currently have a rate that, in most cases, is over half of what the current rate is. Nonetheless, people will always need a home, and there are still some great opportunities in the market.
Let’s take a closer look at the numbers for our region.
The median home price in Southwest Riverside County dipped from the previous month ($558,000/$561,500), down 1% from a year ago ($565,000), but was up 20% from 2 years ago ($465,000). Unsold inventory decreased to 4 months (6 months is considered a healthy market), and the median time on the market increased again from last month to 35 days. This is up from 10 days last year and significantly higher than 2 years ago when it was just 7 days. Unit sales were back up with an increase of 5% from the previous month but are still down 48% from last year. Unsold inventory decreased again from the previous month by 15% but is considerably up from last year, with an increase of 100%, reflecting double the inventory from December 2021. Median prices were relatively flat across the region. Those cities that took a hit saw a decreased range of -1.8% to -3.5%, while those that saw an increase had a range of 0.0%-9.3%.
As for a legislative update, 24 new laws took effect on January 1 that may affect REALTORs® or a real estate transaction. These include licensing, HOAs, ADUs, priority to homeowners wishing to purchase a foreclosed property (as opposed to an investor), assistance in streamlining the approval process for converting commercial and industrial zoning to residential, and adding funding available to homeowners via down payment assistance grants and help with low-cost ADU construction.
As of today, 369 new bills have already been introduced, proving that we will once again have a very busy legislative year. With new faces locally, in Sacramento, and Washington DC, we have the opportunity to educate and inform them of how important real estate is and the significant economic role it plays in the lives of the communities they represent.
Well, the holidays and any slowing/break period are over, and it’s time to tackle a new year. I know I’ll be busy, but not too busy to help you with any questions you might have. If you see me at an event, and there are plenty of them, please come say hello. I enjoy being a resource to you and your business.
If you’d like a copy of my entire report including the mentioned slides, 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.