We are half way through August and things continue to be very active in the Temecula Real Estate Market. It is primarily a case of things remaining much the same with few increases. As always, my numbers (first time readers) are based mostly on single family, detached homes that are priced under $1,000,000. Steady data pulls are the finest way to see what trends and fluctuations are influencing the market.

Let's get into the fundamental numbers:

• Total Number of Actively Listed on the Market - 379
• Average Home Listed Price - $ 366,274
• Number of Temecula Homes Sold in July - 148
• Avg. Sold Temecula Property Price - $ 305,048
• Avg. Days on Market Ahead Of Sale - 57 Days

Evaluating July to August, active listings on the market went down just by 3 listings! However we continually see a price increase from an average listed price of $358,625 in July to $366,274 in August. That represents a 2.13% active cost increase month over month. This was a pattern in July as well which also had a 2% cost increase.

Even so, the number of Temecula homes sold has reduced from 161 in June to 148, a decrease of 7.45%. I am not shocked by that difference because truthfully it is proving extremely difficult to get families into homes. I have shown a lot of houses recently and more often than not, the standard and bank-owned (if good) have left the market really quick with multiple offers. 

This buyer demand continues to be proven by the rising average sales cost for Temecula Valley homes. In July, it was an average purchase cost of $293,890 and in July we saw $305,048, a boost of 3.80% in one month. That is additional to a 1.34% increase the previous month. Lastly, the average days on market has also continued to fall yet another 13.63% from last month. In June the average days on market dropped 25% from sales in May. So that is a huge difference and is lining up with active cost, sold cost, and tighter supply of Temecula properties.

As I said, real estate is looking like a fairly good investment at this moment. But I am keen to see whats in front of us as summer is over for the kids and a lot of parents will stop shopping as the school year kicks in. Actually, the market is moving really quick at this moment that I have various prospective buyers not able to get into homes simply because of multiple offers, rising costs, and challenging short sales.

As a home owner, I really like a growing market and the growing property values. But it is incredibly hard to see my clients becoming annoyed when having to wait months on short sales not getting approved or placing offer after offer and being penalized simply because they are VA and FHA loans going against cash or conventional offers. That is a large element to the market right now.

I hope you enjoyed your August 2011 Temecula real estate update. As usual, I am readily available if you have any inquiries relating to Temecula homes for sale or just need market info!