Welcome to another edition of the REALTOR® Report! 2024 is off and running, and I don’t see it slowing down any time soon. The housing market is continuing down a similar path, we are less than a week away from the Primary Election, and we are expecting a lot of bills to be introduced in the next ten days.
The region experienced the lowest sales and volume in January since I started this report in 2021. Yet the market doesn’t feel like the doom and gloom days of 2008. Why is that? For starters, prices continue to hold steady or even increase, as does demand for homes. Interest rates slightly decreased, sending more potential buyers back into the market. More buyers and limited inventory equals higher demand, which is the driving force behind our home prices. While this report only covers resale transactions, new construction has been highly productive, and home builders are enticing buyers into their offices with incentive programs such as lower interest rate options. Those sales won’t be reflected in my report, but that movement allows resale units to hit the market, which is always a good thing. I expect our sales to increase throughout 2024.
I have some bad news for those who have been waiting for the rates to drop so things are more affordable. Yes, decreasing rates will make things more affordable, but the increased demand will continue to drive prices up, so you may not actually experience any savings. The planned construction and development will help with the inventory, which should help ease some of the prices. At the end of the day, it’s almost impossible to predict the perfect time to buy or sell. You have to do what makes the most sense for you. I will always recommend working with a professional REALTOR®, having a plan, and making the best decision for your needs.
Let’s take a closer look at the numbers for our region from January 2024.
The median home price in Southwest Riverside County remained flat compared to the previous month ($580,000/$580,181) and improved by 6% from one year ago ($545,000). Comparing the median price to where it was 2 years ago, it has increased by 2.7% when the median price was $565,000. Unsold inventory increased to 5 months, getting closer to the 6 months that is considered a healthy market. The median time on the market increased again to 29 days, down from 42 days last year but up considerably from 2 years ago when it was just 13 days. Unit sales dropped 14% from last month and are down 9% from last year. Unsold inventory was also flat compared to the previous month, and it remains down from last year, with a decrease of 16%. Median prices were up in all but one city covered in my report, ranging from -2.1% to 11.3%.
On the legislative side, we know that around 3,000 bills are introduced by our state legislators each year. With the deadline for bill introduction ten days away, only 534 have been introduced so far. This means that we are anticipating a massive influx of bills to read, interpret, and take positions on in the very near future!
I will offer some good news on the legislative front: we probably won’t see too many crazy bills this year. First, it’s an election year, and no one wants to introduce or push any legislation that could persuade voters to vote them out of office. Secondly, the state is facing a massive deficit budget. It has already been implied that legislation that would have a significant fiscal impact (i.e., Taxes) probably won’t make it far this year. However, that doesn’t mean that we can let our guard down. We will continue to work with all of our colleagues and contacts to evaluate what is best for our real estate community, private property rights, and business community and make our voices and opinions heard.
Before I sign off, I want to recognize SRCAR’s CEO, Connie Lynch. Connie has dedicated 32 years to SRCAR and the Southwest Riverside County community and will be retiring at the end of February. She has done so much for us and has ensured that the community knows the importance of the role REALTORS® play not only in a transaction but also as citizens and partners within the community. I am personally grateful for all that Connie has done, and I hope you will join me in wishing her the best in her well-deserved retirement.
I hope I have covered everything that affects you and your business. Please let me know if I left anything out or if you need anything explained further.
If you’d like a copy of my entire report including the detailed 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…
Adam A. Ruiz
Government Affairs Director
Southwest Riverside County Association of REALTORs®
