As we welcome November 2023, it’s time to take a look back at the local real estate market and see how it fared in October compared to September. Let’s dive into the numbers and see what they tell us about the state of mountain housing across our beautiful communities.
First things first, let’s talk about inventory. In September, we had 460 single-family residences (SFRs) available for sale across our market area, stretching from Crestline to Running Springs. Fast forward to October, and we saw a slight dip with 442 homes actively listed for sale. While this might seem like a decrease, it’s not alarming. There were 250 homes in Lake Arrowhead in October compared to 269 in September, 115 in Crestline versus 113 and 77 in Running Springs compared to 78. So, the market remains active and vibrant.
Now, what about those open escrows? In September, we had 67 of them, and in October, we recorded 65. The breakdown shows nine in Running Springs, 18 in Crestline and 38 in Lake Arrowhead for October. The previous month had 10 in Running Springs, 22 in Crestline and 35 in Lake Arrowhead. While we’ve seen a slight dip in open escrows, it’s not a drastic change and could be attributed to seasonal fluctuations.
The big headline, however, is the closed sales. In September, we had 73 closed escrows, but October brought a notable drop with only 40 units successfully closing escrow. That’s roughly a 54-percent decrease in closed unit activity compared to the previous month. It’s worth keeping an eye on this trend as it may have implications for the market in the coming months.
What about the time it takes to sell a home? In September, the average days on market (DOM) was 102; in October, it increased to 121. While this may seem like a slowdown, it’s important to put it in perspective. Before the pandemic, in February 2020, the average DOM was a whopping 223. So, even with the increase, we’re far below pre-pandemic levels, indicating a brisk interest in mountain housing.
Now, let’s talk prices. The average price per square foot has shown a remarkable increase, going from $251 in February 2020 to $399 this month. That’s quite a jump, reflecting the strong demand for housing in our area.
Despite the ongoing economic volatility and rising interest rates, the demand for housing continues to outpace supply, even with interest rates hovering around 8 percent. Surprisingly, home prices are holding steady across the board, and we’re starting to see a shift back into the seller’s favor, though still overall sitting as a balanced market. Savvy buyers are taking advantage of new opportunities in the mortgage market, including rate buy-downs, first-time buyer programs and other incentives to make purchasing a home at historically high interest rates more appealing.
While we’ve seen some fluctuations in the real estate market over the past month, the overall picture remains positive. Mountain housing continues to be in demand and, despite some slowing in the process, prices are holding strong.
As we move into November and beyond, it will be interesting to see how these trends evolve but, for now, it’s safe to say that our local real estate market is sailing steadily through the changing tides of the economy.
If you’d like to learn more about the current local market conditions, explore available options or subscribe to local market statistics that you can follow at your own pace, reach out to Theresa Grant, Real Estate Broker (DRE #01202881) at [email protected]. You can also follow her on Instagram, @theresagrantrealtor, and YouTube, @theresagrantrealtor.