Both Single Family & Attached properties Median Sales Price hit new highs last month. Despite mortgage rates in the high 6s-7s. Versus Spring of 2022 which is now the prior high for this market cycle where rates were in the 4s-5s
There were very few properties listed and even fewer Sold in August 2023
Detached Sold: 1,331
Median: 4 bed, 3 bath, 1907 ESF, $1,020,000
Attached/Townhome/Rowhome Sold: 765
Median: 2 bed, 2 bath, 1140 ESF, $675,000
2-4 Units Sold: 48 (no charts available)
Median: 2 units, $1,200,000
Active Listings
Months of Inventory: this reflects absorption or demand. How many months does it take to sell through all Active listings?
2-4 Units: there isn’t a summary of stats of the property ESF or bed/bath count as they are varied. Mix of units, sizes, lot sizes, garages, potential upside.
Solds are from the past 60 days, so roughly 42 are selling per month.
18 were listed as Cash, 1-1031 exchange, 10 financing not specified, and the rest were a smattering of Conventional, VA & FHA
All of the FHA purchases were on 2 units only, which is not surprising given the self sufficiency rule for 3 & 4 Units
Multiple areas of CA were declared a disaster area earlier this year which extended the 1031 exchange deadline to October 16, 2023 so we shall see if more 1031 money is placed this month
Rates and loan limits are higher for 2-4 units. As of Friday, a broker quoted owner occupied 2-4 unit rates at 8.25% and investor at 8.625%
Cash Sales Update - does not include 2-4 units
Summary
Here’s a sampling of how few Detached homes are on the market/to choose from that are Active as of this writing:
As I’ve shared with many of you for some time now, we are going to need see some type of widespread distress to see more forced Sellers and decline in wealth as there continue to be a lot of cash buyers or intergenerational wealth transfer subsidizing Buyers down payments and ability to bid up prices, even when they need work.