It is beginning to appear like Fall! The climate has gotten wonderfully cooler and honestly, this is my favorite time of the year. Halloween is almost here and the bedroom community of Temecula Valley has plenty of litlle ones (mine included) who are excited for halloween costumes, chocolate, and mean parents who love to scare their kids. Alright, maybe that is just my situation but my 5 year old has triple dared me to scare him!
Hopefully this update discovers you and your loved ones in very good health and getting ready for the holiday. As we move into fall, I assume the amount of Temecula Valley homes sold to lower versus the Summer months. Though we do not have the severe decline related with cooler climates, we do see a seasonal decrease generally beginning in the Fall and going through to Spring when we shoot back into high gear. Let's see if the numbers display this:
It appears we are seeing some decline from Temecula home sales in August 2011. The complete amount of active listings remained just about the same but the average listed selling price slipped from $362,800 to $354,700. That is a drop of $8,100 or a 2.2% change.
Most importantly we saw a bigger decline in number of Temecula houses sold from 171 in August to 140 in September, an 18% drop in the number of Temecula homes sold month over month. Additionally we also see a decrease in actual sales cost from $303,100 in August to $287,700 in September, with a decline in sold home values of approximately 5.1%. That is amajor move and may demonstrate incomparably decreasing demand from purchasers. Again, this isn't too significant however I am a little astonished by the 18% fall in Temecula home closes. It is more than I expected and I am interested to see if it is imitated when I do both my Murrieta and Menifee Market Reports later today.
One thing I have definitely observed is a considerable growth in individuals refinancing. One benefit of doing this update today is that earlier this morning President Obama explained an extention on the present limits of the Making Home Affordable Act. That will push even more refinances when it comes into play in the upcoming week or two. More refinances means less short sales plus less supply. Having interest rates this low, we may see a critical growth in buying activity after the New Year.
And that finishes my October 2011 Temecula Valley Real Estate Market Report. As always, if you have questions, feel free to shoot over an email. Please have a terrific month of October and an excellent Halloween!
