Southern California Agents, Buyers, Sellers Report Mixed Signals
Mixed signals.
That, according to the Desert Sun, is what real estate professionals, sellers and buyers all say they’re receiving in the Southern California housing market.
While indicators for the six-county region of Southern California released Tuesday show dips in median prices and increases in inventory across the board (San Diego County and Los Angeles County especially) the Coachella Valley real estate market continues to buck some of the more pervasive trends.
Some Coachella Valley Realtors report good sales figures, especially in November, possibly a sign that things in the valley are still beating the numbers posted for Riverside County as a whole, despite overall slowing.
Valley real estate agents report that many sellers - particularly the more affluent ones - are hanging tough to garner all or most of their asking price despite generally sluggish overall sales in recent months.
Some buyers, meanwhile, are convinced they have the upper hand in a market where home inventories are high. With California mortgage costs so high, they’re not shy about making offers well below asking prices.
“What’s happening is buyers are coming in with some low offers and not getting them accepted, said Terri Munselle, a local agent. “It’s a stalemate right now in some cases. Sellers are holding out all across the board, partly because it’s so early in the season. The sellers really believe they have February and March to test the waters.”
Still others in a pinch to sell because they’re having another home built or for another reason are slashing prices to attract deal-seeking buyers.
The latest sales numbers for December across Riverside and San Bernardino counties and the rest of Southern California indicate mixed signals. Even as the median price in the six-county Southern California region climbed above $495,000 and a new peak in December, home loan demand has waned and sluggish sales volume hit a decade low, a new reports shows.
In the month of December, according to December 2006 figures just released, some 22,485 new and resale homes were sold regionwide, according to La Jolla-based real estate information service DataQuick Information Systems‘ monthly report. That was up 10.3 percent from November but down 22.3 percent from December a year ago.
Homes in San Bernardino County remained the most affordable in the six-county region, with a $372,000 median price tag last month. That was up 3 percent from a year ago. In Riverside County, the median price rose 5.1 percent to $432,000 in December.
But with California home loan costs soaring above what many families can think about paying, home sales volume dropped 31 percent in both Riverside and San Bernardino counties in December compared with a year ago.
Home sales remain fairly robust for luxury homes, which aren’t beholden to local mortgage rates, area real estate agents said, and prices generally reflect that trend.
“On the upper, high end, prices are staying up there,” said Kim Hyde, agent with Dyson & Dyson Real Estate Associates. “But at $1 million and below, I see a lot of people negotiating.”
Hyde believes the Southern California market is in an adjustment period and that monthly price and sales numbers can be misleading. One thing she’s certain of is that the many new homes on the market and incentives being offered in Indio, Desert Hot Springs and other areas are squeezing some resellers.
Coachella Valley specific figures will be released later this month. Home sales across America are expected to decline less sharply this year than they did in 2006, while price appreciation is expected to gain steam, according to the National Association of Realtors.