Rolling into 2017 has been much of the same as 2016. Home sales price are on a rise year over year and the number of home listings are down considerably. Consequently, the greatest concern for the Riverside 92506 market is home affordability.
We look at all factors. From average sold price, average days on market to the number of homes listed and as a result, we’re looking at a good 2017.
Home prices are up and inventory is down consequently we’ll likely see an increase in home prices.
Real estate sales for zip code 92506, Riverside California were solid for January 2017. The biggest change is the number of homes listed for January 2017. That number increased 13.6% from 51 homes in January 2016 to 59 homes in January 2017. As a result, we’ll likely continue to see prices increase slightly. Why only “slightly”?. That’s a two-fold response as home prices are becoming less and less affordable and as a result, federal loan limits (FHA $417,00) are restrictive for most buyers because you’ll need to come in with a minimum of $203,070.00 + closing costs for buy the average priced home in Riverside 92506 of $464,506.
These numbers lead us to the active listings which increased 25% from one year ago. That’s considerable and is probably why 92506 realized a 12.7% increase in home prices over January 2016. Real estate is good, long term investment for homeowners in Riverside 92506.
Why Pricing Matters:
This takes us to the number of homes that didn’t sell. 59 homes were listed in January 2017 and 27 sold, resulting in 9 homes that didn’t sell! Why these homes didn’t sell is they we’re priced incorrectly. To be more specific, it’s likely that these homes we’re priced too high. The main contributing factor is to pricing homes incorrectly (too high) is available equity in homes. What does this mean? If you want to sell your home, you’ll likely want to buy a replacement home, right? Consequently, you’ll need a down payment (ranging from 3% to 20% of the purchase price for a new home loan). While most families don’t have this money stashed in their savings accounts, they need to use the “equity” from the sale of their home. If there isn’t enough money from the sale, they are less likely to price the home right to sell.
The good news with our area… Inland Empire is seeing a robust increase in new jobs. These jobs will drive spending on groceries, home supplies, new cars and, we’ll you get it. If you review the Riverside 92506 2016 numbers they’ll show similar trends. Nothing to panic over and yet kind of a bland market. Consequently, it’s both a buyers market and a sellers market…leaning more to the sellers market. If you’ve been considering selling, sell now.
We’re realizing a spurred economy with recent Dow activity crossing the 20,000 mark. Does this really result in you getting rich…not likely…however, it does spur confidence in buyers and their eagerness to reach into their checking and savings account for $200,000+ cash down to buy a home in your neighborhood.