Coronado Real Time Market Profile
Contributing Content Writer: Horace Chavez, Broker Associate DRE#01259508
According to Altos Research, Single family detached homes on the island are selling much faster compared to last year. 72 days average market time for May 2023 compared to 165 days May 2022. Inventory averaging 19 homes actively on the market this year compared to 31 homes last year. Average list price of homes (not closed sales price) is currently at $4.6M, while in May of 2022 it was at $3.1M. We are still in a seller’s market for detached homes and no signs of it going in the other direction. Recent higher priced homes that hit the market have really pushed up that average.
Condos on the island are even a stronger seller’s market currently than houses. Even with this status, we are seeing a weaking in pricing that looks light and variable. Average market time this year is at 55 days compared to 152 in May of 2022. Inventory stands at 24 units, according to the Multiple Listing Service as of today in comparison to 49 units on the market this time last year. Current list price remains about the same at $1.9M today compared to $1.8M last year. Very steady condo market here in Coronado with an increased demand for the lower priced units.
Pending Home Sales Adding to Resilient Housing Narrative
On a regional level, Mortgage News Daily gives a refreshing narrative that we have had a strong year in homes going under contract. Buyers begin to see more value when prices don’t seem to move much in any direction. Buyers are still buying and when the interest rates dip it only compounds this effect. San Diego is a very rate sensitive market. Any shift up or down immediately affects our demand, market times, homes going under contract, and to some extent pricing.
In the case of resilience in the housing market, forecasts have not been able to accurately give the right depiction of the market activity. February for example called for a 2% drop in pending sales and the result was an almost 1% increase. MSNBC gave a story on how the market saw a dip of 5.2% in pending sales (homes going under contract) for the resale market compared to a 9% increase in pending sales for new construction. It’s no surprise that we are down in the resale market at these numbers due to the lack of inventory compared to last year. What we are now seeing in the market is multiple offer situations and offers being written up above list price. This is an obvious indicator that housing supply is not meeting housing demand. According to the National Association of Realtors, sales in the second half of the year should be notably better than the first half as job gains continue and more favorable mortgage rates are expected.
Data on contract signings show that home shoppers submitted successful offers on homes at roughly the same pace as January and February despite continued ups and downs in mortgage rates. Despite a small slip, March existing-home sales data reinforced the notion that January may have been the low point. Because contract signings are an early stage in the home sale process and gives some sense of what the recovery might look like. If current economic conditions persist, with elevated mortgage rates and home prices amid scarce inventory, the market is likely in for a long, slow climb.
(Sources: MSNBC, RISMedia, Altos Research, National Association of Realtors, California Association of Realtors, Mortgage News Daily)
About the contributing writer: Horace Chavez, Broker Associate with ‘The Shores Group’ Real Estate Advisors and licensed since 1999. “I recognize every buyer and seller have their own unique needs and goals. My experience and resources have allowed me to provide a high level of service to all my clients.” Areas of service consist of sales, marketing, including transaction and property management. Investment properties and Second homes have been a good part of our buyer community. I also work with 1031 Exchanges and Certified as a Probate & Trust Specialist.
Contact Horace Chavez at 619-992-7001
DISCLAIMER: This content is for informational and entertainment purposes only. The contents shared is deemed to be reliable and gathered from different sources including the perspective of the author. It is not meant for or intended to provide or replace any type of legal, tax, financial, or accounting professional or personal advice or service. It is highly advised that the reader seek their own professional advisor or counsel concerning their specific individual needs or circumstances before making any decisions or conclusions. Always review and know your options before making any decisions.
To view Coronado homes for sale, for rent or for property management services, please visit Coronado Shores Co.