Anna Child Group
Overall Market Indices
Homes Sold: In May 2014, the entire Huntington Beach market saw a total of 147 houses, townhomes, and condos sold… a decrease of 24.2% compared to the same period of 2013. Detached home sales were down 17.5% and attached home sales (condos/townhouses) were down 33.8%.
Average Price: The average price of detached homes sold in May 2014 was $858,915, down 1.1% from the same period last year. For attached homes the average price was up 2.1% to $559,734 compared May 2013.
Price per Square Foot: The average price per square foot of the entire Huntington Beach market was $415 in May 2014. This is the same level as April and the same level as July 2013. So the market price per square foot for the entire market has been flat for 10 months… but it is up 6.8% from May 2013. The price per square foot for detached homes sold in May 2014 was $422, up 1.8% from last month and up 3.3% from a year ago. It hit a peak of $446 per square foot in July 2013. The strong increase in price per square foot in the attached home market has been noticeable in the last year… it is up 1.8% compared to last month, and up 21.6% compared to May 2013.
Marketing Time: Average Days on Market is standing at 56… down from 75 days in May of last year.
Inventory As of May 31, the total inventory of homes for sale in Huntington Beach is 545 houses, townhomes, and condominiums. This is up sharply since December 31, 2013 when the inventory was 405 homes. Should you elect to put your home on the market now, there will be less competition than most years, but the buyers have more choices than the recent past.
Mortgage Rates The rate for the conforming 30-year fixed rate mortgage has been “up and down” since bottoming at 3.4% in May 2013. Rates jumped as high as 4.67 in September, but fortunately today’s rate is way back down to 4.15% according to bankrate.com. This is the Lowest Rates have been so far in 2014, and this offers an affordability window that many buyers should exploit while it lasts.
Money Savings Example: A 1/2 percent reduction in mortgage rate translates to $208 per month in interest savings for a $500,000 mortgage!
What to do? June is the heart of the selling season… Now is a great time to put your home on the market. With interest rates and inventory still relatively low, sellers have the opportunity to find a buyer willing to pay full market value. But, keeping in mind that inventory is up and prices have been flat, preparing your home for the market will be more important than last year, and pricing close to (not well over) the most recent closed sales is the “correct strategy” for today’s market.
Thanks for Reading! And, keep the homebuyer & homeseller referrals coming… those people you send allow me to have the time and resources to publish this Market Update each month! Please share this information via: word of mouth, email link, and/or social media. I really appreciate it!