SoCal Real Estate Update: Prices Hit Record Highs as Inventory Remains Low

Filed under: Temecula Real Estate

There are a few notable things in the current real estate market, so I wanted to share this information to keep everyone in the loop. You can see the data here in the video as I am sharing my screen.

Unpacking the Data

The information is coming from the entire MLS for Southern California. Our median price is $850,000, which is up… in fact, it’s an all-time high. Our previous high was $835,000.

If we look “underneath the hood,” we can see that active listings are down significantly from where we normally are. If we look at the range from 2014 – 2018, it shows us what a semi-normalized market looks like. At that time, we weren’t in the recession anymore and the market was healthy. We had normal peaks and valleys each year: peaking in the summer and dipping in the winter.

Then, COVID hit and inventory levels dwindled down. We’ve never really recovered from that. So, we have a very weak amount of active inventory, as well as a weak amount of buyer activity. So, we just have less closings happening. But the sales prices are at an all-time high.

What Will Happen in the Future?

It goes to show: since inventory is low, I would bet that when rates come back down again that we are going to have a seller’s market again. So if you are thinking about making a move to purchase a property, it’s not a bad time to get in the market. I think we have some pent-up demand and we’ll see things pop higher if the rates get a bit of a relief.

Of course, we can’t predict the future. So, we’ll have to watch to see how everything unfolds. Regardless of what is happening in the real estate market, I’m always here to help when you need to buy or sell a home. Reach out to me if you need some personalized recommendations. Call, text, or email me at (951) 473-0390 or [email protected]