Summer 2013 showed continued improvement in the Canyon Lake Housing Market with average prices increasing and quick turnover of properties. Here are the highlights from July, August and September:
- Low supply and high demand was the norm with multiple offers on properties. With an average of only 60-70 properties available for sale over the summer, buyers were offering over the list price in many cases and writing very clean offers. It was common to see buyers waive termite repairs, home warranties and even appraisals in some transactions.
- Entry level waterfront sales were hot. The low end for lake homes started the year in the $400’s and jumped to the mid to high $500’s by late July. Summers are typically a good time to sell a waterfront and this year was no exception however the high end waterfront market has not come back as strong yet.
- Most of the price action was between $200,000 and $400,000. Because of affordability and FHA loan limits, most of the home sales were under $400,000. Investors still bought a lot of homes, but for them the more attractive prices were under $300,000. There are still a lot of 1st time home buyers in the market at these prices and a lot of folks who realize that it’s cheaper to buy than rent in most cases.
- As prices have come up 15-20% year over year, many sellers have equity in their homes and are making move ups into to mid range homes. Most short sales and foreclosures have disappeared from our market compared to a year ago when those distressed sales were as much as 60% of the market some months.
Here are the numbers for the 3rd quarter of 2013 in Canyon Lake:
Sold Properties July/2013-Sept/2013
- Homes 84 $214,000-$1,500,000
- Condos 4 $92,000-$425,000
- Mobiles 4 $115,000-$148,000
- Lots 9 $29,000-$70,000
What to expect for home sales in October, November and December
The holidays are typically a slower time for real estate in Canyon Lake. That coupled with the recent government shutdown and slightly higher interest rates might cool the market a little. More homes are available right now (approx. 100 in Canyon Lake) so it means more supply and less demand. Expect prices to be a flat for the rest of the year and multiple offers to be rare except in the case of really special properties that have great buyer appeal. There are still buyers out there ready to make a purchase but we can expect more normal turnover and modest appreciation than we saw during the summer. Next January and February should see a bump up in activity as in most years around Canyon Lake.
Current market snapshot compared to a year ago:
Currently Active Properties 10/22/13
- Homes 102 $255,000-$2,200,000
- Condos 4 $185,000-$419,000
- Mobiles 1 $125,000
- Lots 24 $19,800-$350,000
Currently Pending Properties 10/22/13 *
- Homes 45 $180,000-$775,000
- Condos 3 $160,000-$250,000
- Mobiles 1 $138,000
- Lots 3 $35,000-$228,500
*pending prices based on last listed price, actual sales price not known until sale closes
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Information provided by: Justin Bevins | Prudential Canyon Lake Realty 951-326-0521 | BRE #01407424
Data provided by California Regional Multiple Listing Service and National Association of Realtors RPR