Anna Child Group
Overall Market Indices
So far during the first seven months of 2013, the Downtown Huntington Beach area saw a total of 171 houses, townhomes, and condos sold compared to 149 in the same period of 2012 (14.7% increase). For all condos, townhomes, and detached houses, the average Downtown Huntington Beach sale price increased from $731,665 to $749,675 a 2.46% increase compared to the same period in 2012. Price per square foot increased from $364.01 to $399.83 (9.84% increase).
The graph shows Sales by Price Segment, and it clearly indicates a jump in sales activity in the higher price segments as well as the $500,000 to $700,000 range, which is a reflection of an increase in the sales of luxury and oceanview condos.
According to Bankrate.com, the rate for the conforming 30-year fixed rate mortgage have been on a roller coaster ride. After hitting a low of 3.4% in May 2013, the rates jumped to 4.64 in early July, to about 4.35% today. The jump in rates have hurt many would be home buyers, some can no longer qualify or afford the home they want to buy.
After hitting a 12 month low in May 2013, the inventory of available homes has been increasing. Based on the number of homes selling and homes on the market, there is presently a 3.3 months supply of homes on the market. Presently there is a total of 429 condos, townhomes, and houses for sale in all of Huntington Beach. The peak level of homes for sale in Huntington Beach was 461 (June), so the overall Huntington Beach inventory has dropped about 6.9% since last month.
Both prices and mortgage rates have increased significantly, and Homebuyer Affordability has diminished as a result. The worst of the housing crisis is certainly behind us, and there has been a strong recovery in prices and sales over the last 18 months. However, the sales volume has decreased somewhat in recent weeks as a result of the higher interest rates. I am not expecting to see the same level of price appreciation in the next 12 months that we saw in the past 12 months.