March continues to show promise as local markets are showing steady turnover in homes particularly at prices below $500,000. In some areas, the affluent crowd is stepping back into the market to soak up the inventory at the higher price levels. Here’s your local market reports for Canyon Lake, Murrieta, and Temecula.
Prices continue to drop on the less desirable or overpriced homes that have been on the market for extended periods of time. Some of this is because of market timing – many of these homes went on the market in the slowest part of the selling season so they’ve unfortunately been sitting for a few months. Some of the problem is also because the market was coming off such a great year and some sellers got a little enthused about what they could sell their home for. Overall, the median days on market have increased quite a bit over the last few months as seen in the chart below.Canyon Lake is an area where that mid to high market still hasn’t come back. Many people move around within the community to better properties like golf course and waterfront homes. It’s a move-up for many home buyers and they need to sell their existing home quite often in order to buy the move-up home. The market has matured a lot since the recent lows of 2009, but it still has a ways to go with more affluent and move up buyers.
Murrieta continues to have a very tight supply and demand picture below $500,000 with an average of only about 2 months supply of homes as seen in the graph below. Overall there are 300-400 homes for sale in that price range, but they are selling at the same or faster pace than they come on the market. Median sold prices and and days on market have both been less than stellar for home sellers the last few months, but much of that is because of market timing and the somewhat slow start to the selling season we experienced in January and February.
The Temecula market has been a little hotter than other areas with median sold prices continuing to climb and days on market holding steady at 40 days as seen below. The majority of activity in Temecula is between $300,000 and $500,000, but there are quite a few homes being sold above $500k and certainly it’s one market where more affluent buyers exist and are more active than most local areas. Overall there is only about a 3.5 month supply of homes which indicates we still have a seller’s market and at least for the short term, prices will likely keep climbing.
Keep your fingers crossed that activity continues to pick up in all areas as we go into the spring and summer selling season. You can sign up to get weekly market reports delivered to your inbox every Monday here.