Is this Market Really THAT HOT???
As most of you know, I like to use the 93536 (Lancaster west) zip code for my data and analytics. Today, that parameter encompasses… Ave. I on the north to Ave. L on the south and from 20th st. west to 60th st. west. This is 12 square miles of the 93536 zip code. A pretty big sample size area to pull from I would say.
To get a good idea of the activity in the market this past year I took the data from June 1st, 2020, to July 31st, 2020, and compared it to June 1st, 2021, to July 31st 2021 and this is what I found. There was a year over year increase of OVER 26%. Crazy, Right!? From June 1, 2020, to July 31st, 2020, there were 113 homes that sold for an average sales price of $376,145.00. From June 1st, 2021, to July 31st, 2021, there were a total of 126 homes that sold for an average sales price of $474,327.00. That is a year over year difference of a little over $98,000.00 on average.
Now, we are still in a sellers’ market, but I’m pretty sure we’re not going to continue to see this type of increase year over year going forward. Since the beginning of June, we have seen a steady increase in the housing inventory. Earlier this year we had under 300 homes for sale. Today, we are just under 600 homes for sale. (This was taken from the Greater Antelope Valley Association of Realtors). The jump from 300 to 600 sounds like a lot but as you may recall during the summer of 2019, we had about 1,600 homes for sale (when the mortgage interest rate went above 5%).
I do see a more realistic increase in our near future … likely in the 3%-7% range year over year. With the current low interest rates, the real estate market will continue to be strong, just not at a 26% increase pace.
If you have any questions about this or any other real estate related matter, feel free to call, text, email or message me, I’m here for you.
And, if you know of anyone thinking about buying or selling give me a call and I’ll take excellent care of them. I truly do appreciate your referrals.
Take care and be safe out there.
Sincerely
Ron Hier (661) 406-1562
