It has been said that real estate is local, and that fact has been proven here in Lake County real estate sales. Because we are a small market in California, it is difficult to average the small number of sales to see where we are heading. One month may be way up and the next month way down because even a few sales can change those numbers drastically. It would be much more accurate if we had greater numbers to work with, but we use what we have. The only way to increase the accuracy is to look at the market by quarter, half year and year to year and here are the numbers.
Closed sales of homes in Lake County totaled 214 in the second quarter of 2014, which is 53.6 percent more than the 139 units sold in the first quarter of this year, according to information gathered from the Lake County Multiple Listing Service (MLS). However, compared to second quarter 2013, sales have declined 8.9 percent from 235. The first half of 2014 shows 353 sales of single-family homes compared to 426 in the first half of 2013, a 17.13-percent decline.
These numbers do show a general slowdown in the local market for the volume of sales. Several factors may have come into play including the condition of the lake, the negative perception of Lake County by buyers and the closure of Konocti Resort and Spa which was a major draw. The countywide median price of a single-family home rose 12.23 percent from $151,116 in the first quarter 2014 to $169,598 in the second quarter of this year. It was also up 13.8 percent from $149,017 in the second quarter of last year, according to the MLS. The first half of 2014 shows a median price of $160,357, an increase of 16.05 percent over median price of $138,175 reported in the first half of 2013. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.
This is good news to property owners who have bought their homes three or four years ago as well as for those who bought them prior to 2003 and haven”t borrowed money on the equity. For many this is what they were waiting for to put their property on the market. Even though the number of sales have declined some, there are still plenty of buyers looking for a second home and there are willing to pay a fair price for them. There are reports that there is multiple offers on many of the listed homes.
Other key facts from Lake County”s housing report include:
• The number of homes for sale was 6.4 percent lower in the first half of 2014 compared to the same period in 2013. However when comparing actual rate of sales and the existing inventory there is an increase of 13.1 percent to a 6.9 month supply in the first half of 2014 compared to 6.1 months for the same period in 2013. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered typical in a normal market.
• The median number of days it took to sell a home also actually declined slightly in the first half of 2014 compared to 2013”s first half from 75 days to 74.
Ray Perry is the 2013 Realtor of the Year for Lake County and works for CPS Country Air Properties located in the Riviera Shopping Center. He can be reached at 277-8000.
