The real estate market is always changing, and staying on top of the latest trends and indicators is essential for buyers and sellers. NextHome Realty Source One, will help you understand the
Feb 2023 - Market Pulse Update
Dated: March 5 2023
The real estate market is always changing, and staying on top of the latest trends and indicators is essential for buyers and sellers.
NextHome Realty Source One, will help you understand the changes to help you make the best decisions to buy or sell.
In some local cities, recent data reveals a complex set of market conditions that are worth explaining more in detail. In a healthy balanced market, the months supply of homes should be around 6 months.
The months supply has gone up to 31 months in Murrieta, and about 33 months in Temecula. This indicates that there is currently an oversupply of homes on the market, which can be due to lots of homeowners putting their homes up for sale after the New Year.
The median days on the market has increased to just over 60 days in Murrieta, and has decreased to about 37 days in Temecula. This suggests that buyers are taking more time and cautious in their purchasing decisions in Murrieta, and possibly finding Temecula more favorable due to the location and similar pricing.
Let's take a closer look at the numbers. In the last month, the median sales price in cities like Murrieta and Temecula has increased. Price per square foot of Murrieta homes has gone up as well, suggesting that buyers are moving to smaller lower priced homes and that is pushing the price per square foot up.
While Temecula has also seen the median price go up,the price per square foot has dropped significantly. This suggests that buyers in Temecula are getting into larger move up homes that usually have a lower price per square foot.
At first glance, this might seem like good news for sellers, but when you look at other indicators, the story becomes more complicated. In addition to the current oversupply, the total number of houses sold for both Murrieta and Temecula have been on a downward trend.
And in the last week, interest rates have gone up again. Making it more expensive for home buyers to get into and home, and more challenging for sellers to find buyers at their current asking price.
So, what does this all mean?
In our professional opinion, these market conditions suggest a that while cities like Murrieta and Temecula have seen average sales prices increase last month, it will be a more challenging market for sellers due to the high levels of inventory, decreased sales, and higher interest rates.
Qualified buyers may have significant bargaining power in this market in the upcoming months due to the oversupply of homes. We recommend that home buyers take this opportunity to get into a home that they will love given all the homes there is to choose from.
NextHome Realty Source One, will continue to closely monitor these indicators monthly, to see if the market begins to shift towards to a balanced market an advise sellers when it is a better time to list their home for sale.
Thank you for watching and be sure to request a no cost Market Pulse Report and Explanation for your local market.
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