According to CoreLogic®(NYSE: CLGX), a leading global property information, analytics and data-enabled services provider, Southern California homes sold at the slowest pace for the month of October in three years. Factors included diminished sales to investors and cash buyers, a reduction in the median price paid for a home, fewer new-home transactions, waning distressed property sales, constrained resale inventory in many areas, as well as affordability and mortgage availability challenges. This sales decline was not unusual. On average, Southland sales have fallen 0.3 percent between September and October since 1988, when CoreLogic DataQuick data began.
In the Palm Springs and surrounding resort communities, there were 5,186 active residential listings in October. This reflects an increase of 32.2% compared to the last month and 34.9% compared to the last year. The number of homes sold in October was 676 – up 3.5% compared to the previous month; down 4.2% to the previous year.
The average for sale price (in thousand) in October was $593. The sales price as a percentage of the original list price stayed level at 93%. Also remaining steady were the average days on market at 106 and average sold price per square footage at $197.
Reflecting a buyer’s market, the months of inventory based on October closed sales for the combined desert cities is 7.7 – an increase of 28.3% compared to the last month and 42.2% compared to the last year. The sold properties for the last 6 months totaled 4,741.
As our season starts, an increase in inventory is to be expected. High competition and low interest rates should cause sellers to be realistic with their pricing. The National Association of Realtors (NAR) did a survey of realtors in October. They projected that the rising inventory and modest expectation of demand growth would limit price increases in the next twelve months. California Realtors projected a modest 3-5% increase in prices over this period.