October could be big for local real estate if the government shutdown ends
October 07, 2013While the current housing market is expecting to slow due to the government shutdown, 2013 showed a definite improvement in market activity in some areas of San Diego County with prices rising almost 30 percent between January and July of this year.
Although market and housing prices improved in some months more than others, in Valley Center, the overall number of houses sold remained fairly similar to 2012. Here's a recap of the Valley Center housing market in 2013 with comparisons to 2012.
Jeana Boulos / courtesy photo
Amidst a flurry of buyers scrambling to buy properties before prices began to rise, January saw the return of a seller's market with low inventory and multiple-offer situations in most areas of San Diego County. In Valley Center, January closed with 20 homes sold and an average sale price of $434,875 for a 3-bedroom, 3-bath home.
Homes spent an average of 78 days on market and sold on average within 99 percent of the asking price. In comparison, in January 2012, 21 homes sold, spending an average of 117 days on market with an average sales price of $376,199 for a similar residence, selling on average within 96 percent of the asking price.
We see the biggest difference in market activity in May 2013 when 34 homes sold on average within 65 days on market and close to 100 percent of the asking price. While in May 2012, 12 homes sold in an average of 90 days on market and about 95 percent of the asking price. June and July maintained similar numbers in terms of homes sold, coming in at 26 homes in both June and July of 2013 and 2012. The number of homes sold may be the same for June and July of 2013 and 2012.
Real estate sales in Valley Center cannot pick up until the federal government shutdown ends. Graphic courtesy of Jeana Boulos
However, homes in 2012 spent an average of 121 days on market during those months while only spending on average between 46-53 days on market in 2013.
Now that we're in October, it's interesting to note that the overall number of houses sold this year to date is 188, coming in at only 4 more houses than 2012, which had 184 houses sold this same time last year.
October, however, looks to be a promising month if the government shutdown ends. There are currently 87 active listings and 30 pending listings in Valley Center, many of which are being held up from closing due to their inability to get financing approved because of government programs affecting housing. Let's hope this doesn't become a prolonged situation.
Jeana Boulos is a broker associate at Keller Williams Realty.
Correction: The original version of this online article incorrectly spelled Jeana Boulos' name.