Diamond Bar Housing Market Falters Too
I wrote last week on the California housing market as reported by the California Association of Realtors’ (C.A.R.) on the subject of the statewide faltering housing market in California. The data showed that for first time in nearly two years, the rate of home sales in California fell below the 400,000 level for the fourth straight month to 399,600. The sales rate declined 1.8 % from July, and down 6.6% from August 2017.
The Diamond Bar housing market reflected similarities to that of the State, with the sales number falling in the 2nd quarter by 24 units, going down to 101 units sold from 125 for the same period in 2017. (This number only includes the Single Family Detached homes transferred in the City of Diamond Bar within this period of time.) This drop represents a decline of 19.2%, a substantial number for Diamond Bar sales.
According to data extracted from the California Regional Multiple Listing Service (CRMLS), the housing market in Diamond Bar also reflected an increase in the Median Sales Price (MSP) of $30,000, going up from $720,000 in the 2nd Quarter 2017 to $750,000 for the same period in 2018. This mirrored the State’s rate of price appreciation, and in Diamond Bar it represents an increase in the MSP of 4.2%. For comparison’s sake, the previous period reflected an increase in the MSP of $50,000, an annual appreciation of 7.4%.
The Diamond Bar housing market has seen a greater deceleration of price appreciation than the statewide level. Diamond Bar’s numbers reflected a deceleration rate of nearly 44%, quite a bit more than the 24% number reflected statewide, which dropped from an annual increase of 7.2% down to the 5.5 % rate reported this last month.
The key to these numbers is that the affordability of homes is reaching a point where less than 1/3 of the households can afford to purchase the median sale priced home in California. What percent of current homeowners do you think would be able to qualify for the Median Sales Priced home in Diamond Bar, which now stands at $750,000. (Write to me and give me your opinion or give me your estimate at my e-mail address below)
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.