By Nef Cortez
Homes Sales Down! True Home prices up! Median Sales Price is down! The trends have changed. The lower number of sales usually indicates a lower sales volume, and so do home prices. The fact that the number of homes sales in Diamond Bar decreased for a third consecutive quarter is not an indication of a lowering of demand for homes in this community. It is more of a reflection of lower inventory, less homeowners putting their homes on the market, and resulting in fewer choices for those looking to buy a home. The 4th Quarter 2017 report for Diamond Bar home sales noted that there were 98 closed transactions (as reported by the California Regional Multiple Service). The median sales price (Median Sales Price is the point in which half of the homes sold for more and half sold for less) in the 4th quarter was $745,000 for a single family residential (SFR) property. The 1st Quarter 2018 saw a drop of $10,000 in that figure from $745,000.00 down to $735,000.00. This represented a DROP of 1.3% quarter over quarter, or 5.2% annualized. This represents a normalization of the median sales price of Single Family Homes (detached) in Diamond Bar, which have been sky rocketing. The number of transactions, however, was down from 90 in the 4th quarter (October to December 2017), to 78 in the 1st Quarter 2018. This represented a drop of 13.3% from the previous quarter.
The seasonal housing market cycles are not as pronounced in Southern California, and more specifically, in Diamond Bar, as they are in other parts of the U.S. It is, however, not very unusual for the market to slow down at this time of the year because it covers a period which includes major holidays like Thanksgiving, Christmas, and the New Year’s Holiday. The Diamond Bar home sales show an even greater drop in number from the 1st Quarter 2017. The Los Angeles county recordings show that the Diamond Bar closings fell from 98 down to 78 year over year comparing the 1st Quarter 2018 to the same period 2017. That is a drop of 20.4% from one year to the next. That is a huge drop in this industry. Real Estate professionals have been impacted in a fashion similar to a person having their annual income reduced by 20%. Not good for those counting on that income to make ends meet. We will report on the Townhome and Condominium market in next week’s edition.
This article was written by Nef Cortez who is a licensed Real Estate Broker, Ca BRE # 00560181, licensed since 1976. He can be reached for more information via e-mail at email@example.com, or website www.nefcortez.com. Please feel free to email any questions regarding real estate.