A few months ago, on April 2, 2013, I wrote an article entitled Rising prices, lack of housing, condo and townhouse inventory leads to increased demand in the Imperial Valley real estate market discussing the changes in the Imperial Valley real estate market with an upward trending of sales prices throughout the area due to lack of inventory.
Two years ago on March 27, 2011, I wrote a post asking What’s Happening with Imperial Valley Real Estate in the El Centro MSA in 2011? which focused on looking back about three years at the real estate trends in the Imperial Valley Metropolitan Statistical Area (MSA) known as El Centro which covers all of Imperial County.
At the time, in 2011, home sales (all single family residential properties) were showing signs of a slight improvement in sales price however the number of transactions had been steadily trending downward since 2009.
It seems as if now all of the excess inventory is down to a trickle as I wrote about 12 months ago with an article We are in a Sellers Market which emphasized the fact that the number of months of active inventory versus the amount of sales signaled the end of the buyers market months ago, however I was still hearing from other real estate agents telling their buyers we are in a “buyers market” at the time, which is clearly not the case.
So whats happening with Imperial Valley real estate prices now in the El Centro MSA in 2013?
Let’s take a look at the following items using June 17, 2013 as the effective date for Active listings, Pending/Contingent listings, and Sold properties throughout the entire El Centro MSA (Imperial County), which includes all residential properties throughout all of the county. To active, pending, and contingent listing dates from June 1, 2012 and sales from January 1, 2013
Listings for the El Centro MSA (Imperial County) area:
After reviewing the numbers above, lets take a look at the absorption rate for properties in the following Imperial Valley cities. (sales are based upon a three month average and active listings from June 1, 2012 to present):
|City||Zip||# Sales/mo||# Active||# Inventory/mo||Absorption|
|El Centro MSA||69||104||1.50||67%|
* Source: Copyright (c) 2013 Frederic Din, REALTOR(r)
As I talked about in an article a year ago, a buyers market is when the absorption rate is 20% or less and a sellers market is when the absorption rate reaches 60% or higher. All areas above, with the exception of Brawley 92227 have an absorption rate above 60% and the entire Imperial County has an absorption rate of 67%. Sellers market!
Mortgage interest rates continue to be ridiculously and historically low and home prices are still low when compared to the lofty high prices just a few years ago, however the housing inventory overall is newer and more upgraded.
Think about this, in 2003, just 10 years ago, nearly half of the housing stock for sale over the last five hears didn’t even exist and thanks to the housing boom which took place through 2007, these homes provide some wonderful neighborhoods and are desirable places to live.
Home prices are still at low levels however with few homes on the market and more buyers wanting the same properties, prices will rise. How much will the rise? The amount of increase is still unknown since median housing prices have been relatively flat over the last few years, however the number of sales has been declining which is leading to less and less inventory.
Through the first 5.5 months of the year, the median price in 2013 is nearly $140,000 or an increase of approximately 5% over an average of the last few years prices of $133,000.
As a home buyer, you can take advantage of lower sales prices now using low rate financing to lock your home in for a low cost over the long haul and as prices rise, you will have the ability to build equity faster as less homes come onto the market during the next few years.
A few years ago I wrote how home builders are making an increasing presence in the Imperial Valley housing community and builders typically do not enter the market unless they know they can sell a product to buyers and make a profit, these homes are typically priced about 15-20% higher than resale homes. Why are new homes selling and at such a higher price? One simple word, Demand! There is a demand for homes and ready buyers who have stable income, good credit history and a down payment are the ones purchasing these homes.
Now is the time to buy a home before prices and interest rates go up. To learn more about buying your first home, check out my How To video called First Time Home Buyer Video – 3 Important Steps to learn more. Check out areas where you want to live by using our Neighborhood Tour Videos <— by clicking the Neighborhood Tour link.
How can I help you? Feel free to visit and post comments regarding the website and stay tuned for upcoming changes to the look and feel of ImperialValleyREO.com
Are you in the market to buy a home? Get personalized information for any area in the Imperial Valley, including El Centro, Brawley, Calexico, Imperial, Heber and surrounding cities by going to ForSaleByFred.com, ImperialValleyREO.com, or First Time Home Buyer Video
Imperial County and Imperial Valley homeowners who are considering selling their home are encouraged to contact Frederic Din, REALTOR(R) for additional information about getting the most current market values for your home or area. Member of the Imperial County Association of REALTORS (ICAOR).
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