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It’s hard to believe that it’s been over 6 years since the real estate market started it’s downward spiral that helped contribute to one of the worst economic downturns in U.S. history.

If you’ve been in your home that long, then you may have cringed like I did as you watched your equity and value plummet while homes were foreclosed and short sold all around you.  Many lost their homes and much of their equity.  Some have still not recovered.  Hopefully you’ve landed on your feet by now and maybe even begin to build equity again.

The good news is that real estate turned the corner in 2013 and saw it’s strongest gains in the last 6 years.

Value and Volume Up

Prices started perking up back in mid 2012 and  shot up dramatically in January of 2013.  Since then, it’s been month after month of increasing volume and price.

A look at the 1st chart shows that in the last 24 months, the median price of sold homes  has risen from $240,000 to $336,000.  That’s a 40% increase and most of that has happened in the last 15 months since about July of 2012.

The 2nd chart on the right shows that available homes for sale has steadily decreased over an 18 month period to nearly half of what it was near the peak.

This simple illustration of supply and demand really shows the increase in buyer activity that has helped bring the real estate market back

2014 Home Sales

What can we expect in 2014?  Likely the return of a more normal market with more normal appreciation somewhere in the neighborhood of 5-8%.  The days of 25-30% appreciation are probably over… and that’s a good thing for the health and longevity of the market.  -JB

 Did You Know?

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Real Estate information and data provided by:  Justin Bevins, Realtor® – Century 21 Full Realty Services – California Properties, Ph: 951-326-0521, BRE #01407424

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:

1. 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.
2. 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.
3. 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.
4. 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

Do you want to see how this compares with 1st quarter real estate sales in Canyon Lake?

Do you want to search for currently active homes or condos in Canyon Lake?

Information provided by:

Data provided by California Regional Multiple Listing Service and National Association of Realtors RPR

May was another strong month for home sales in Canyon Lake with 34 homes closing escrow according to MLS records.  Historically, May is a strong month anyway for several reasons.  Folks start thinking about a summer move so they can get the kids signed up and ready for the upcoming school year.  Plus, in Canyon Lake, people tend to want to get moved-in for the summer boating season and this usually means a boost in waterfront home sales.

This year is a little unique because we have seen several months of rising demand with a limited supply of homes and this created a higher than usual bump in prices and a reduced number of days on market.  The average days on market in May 2013 was 72 versus an average of 88 days on market in 2012.

Prices have risen steadily in 2013 with the average price moving up from $304,000 in January to $335,000 in May.  Most of the activity is still in the lower price ranges, but with many people starting to build equity in their homes again, the mid price range is starting to heat up as well.  The table below shows homes that were sold in Canyon Lake during the month of according to the MLS.*

Canyon Lake May 2013 Home Sales

If you would like to keep tabs on the market, click here to see current homes for sale in Canyon Lake.

*All data is presumed accurate, but not guaranteed.

Real Estate information and data provided by:  Justin Bevins, Realtor® – Century 21 Full Realty Services, Ph: 951-326-0521, BRE #01407424

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:

1. Builders stopped building homes when the market crashed and as such, the housing supply has not kept pace with the growing population of California.
2. 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.
3. 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.
4. 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:

Data provided by California Regional Multiple Listing Service and National Association of Realtors RPR