The beginning of 2013 has seen some interesting housing activity in Canyon Lake. Among the notable trends is the lack of homes for sale and the subsequent rise in prices. After 6 years of depressed prices and homeselling activity, we’ve suddenly awaken to find out that we’re in a housing shortage. There’s a couple things going on:
- Builders stopped building homes when the market crashed and as such, the housing supply has not kept pace with the growing population of California.
- We still have some of the lowest interest rates in history and we are coming off a period of extremely low house prices created by the housing crash – this has buyers out trying to snap up deals.
- Investors are snapping up the most deals (with cash in many cases). Investors are buying homes by the hundreds and some hedge funds are buying them by the thousands. Some of these home are flips, but most are becoming rentals kept for the long term.
- First time homebuyers and folks who did short sales 3-4 years ago are back out in force.
All of this has created a supply and demand problem which has caused a year over year price increase of 12-18% in most of Riverside County. The surge in housing prices have also caused vacant lots to be popular again as it’s starting to become cost effective to build again. Here are the numbers for the 1st quarter of 2013 in Canyon Lake:
Currently Active Properties 04/22/13
- Homes 67 $260,000-$1,660,000
- Condos 7 $97,900-$425,000
- Mobiles 3 $149,900-$150,000
- Lots 25 $28,900-$425,000
Currently Pending Properties 04/22/13
- Homes 71 $110,000-$1,150,000 *
- Mobiles 4 $74,000-$169,400
- Lots 3 $24,500-$129,000
Sold Properties 01/13-03/13
- Homes 76 $130,000-$928,000
- Condos 2 $130,000-$222,500
- Mobiles 1 $95,000
- Lots 5 $15,000-$35,500
*pending prices based on last listed price, actual sales price not known until sale closes
Information provided by: Justin Bevins | Prudential Canyon Lake Realty 951-326-0521 | DRE #01407424
Data provided by California Regional Multiple Listing Service and National Association of Realtors RPR