Anna Child- 714-398-6913
Recent volatility in the stock market have contributed to low Treasury yields and continued low mortgage rates below 4%. It may be a prudent time for stock investors to increase real estate holdings… and it is definitely a good time to buy & sell a home.
Homes Sold: In February 2016, the entire Huntington Beach market saw a total of 89 houses, townhomes, and condos sold… a decrease of 26.6% compared to last month and 18.3% decrease compared to the same period of 2015. There were 56 detached properties sold and 33 attached homes sold.
Average Price: The average price of detached homes sold in February 2016 was $1,068,205 an increase of 14.3% compared to last month, and an increase of 15.0% compared to February 2015. For attached homes the average price was $531,994, a decrease of 8.9% from last month and an increase of 4.9% from the same period last year.
Price per Square Foot: The average price per square foot ($PSF) of the entire Huntington Beach market was $470 in February 2016. The average price per square foot of detached homes for February 2016 was $488 and for attached homes the $PSF was $423.
Marketing Time: Average Days on Market was down slightly at 73… from 76 days in January 2016.
Mortgage Rates: The rate for the conforming 30-year fixed rate mortgage has been “up and down” since bottoming at 3.40% in May 2013. Rates jumped as high as 4.27 & 4.26 in June/July 2015. Fortunately, today’s rate is still very attractive at 3.71% according to the Bankrate.com Rate Survey (3/4/16). These low rates offer an affordability window that many buyers and sellers should exploit while it lasts… certainly fewer buyers will qualify to purchase when rates increase again. Money Savings Example: A 1/2 percent reduction in mortgage rate translates to $208 per month in interest savings for a $500,000 mortgage!
Price Disclaimer: It should be noted that an increase in average price (and average price per square foot) of sold homes does not 100% correlate with appreciation of all homes. If buyers just happen to be focusing their purchase on the more upgraded/better location homes, it is possible to have an increase in the average price of sold homes while appreciation is flat. The same is true on the downside if buyers chose to buy mostly “fixer homes” in a particular month. The best way to value an individual home is by comparing it to similar homes recently sold in the same neighborhood.