Temecula - Murrieta California Real Estate Market Update

Real Estate market improves, but not for luxury homes.

June 2010 market conditions.

The housing market in the Temecula Valley is showing signs of improvement. The number of sales that closed in May 2010, 194 homes sold, is slightly higher than May 2009 when 183 were sold.

The main improvement is the median price ( the price of the home in the middle of the list ). In May 2009 the median home sold for $240,000 and was 3,149 square feet. In May 2010 the median home was 3,113 square feet and sold for $270,000.

So what is happening here is the inventory of available homes for sale is very low and more buyers are offering higher prices. In many cases the homes are selling within a day or two of being listed. There are some all-cash buyers that are paying more than the initial asking price.

The  pre-foreclosure short sales account for about 90% of the sales. The other 10% is slpit almost even between bank owned homes and standard sales.

Because of the recent market conditions the luxury home market now starts at $700,000 based on the top 5% of the market being considered luxury.

The luxury market continues to be slow and prices are falling.

There were 8 luxury homes sold in May 2010 and a total of 37 sold in the first 5-months of 2010. Compared to 14 sales in May 2009 and 58 sold for the first 5-months of 2009 we see that the luxury market continues to suffer.

Prices of luxury homes are still falling. the average price per square foot for May 2009 was $221.38 and it dropped to $203.16 for May 2010.

There are currently 193 luxury homes actively listed for sale in the Temecula - Murrieta market area. We have about a 2-year supply.