Menifee CA Real Estate Market 9/2011

Time is speeding by this year and Menifee real estate is flying along with it! As of just yesterday, the Federal Reserve has taken additional action to stimulate the economy and thus interest rates dropped even lower! I just had a client contact my lender today to do an FHA Streamline and lower their rate from 5.5% which they obtained about 1.5 years ago to an estimated 3.75%! That is an extraordinary change and the beneficial side of FHA Streamlines is they are quite simple for anybody who presently has an FHA loan - even if the property value has fallen down!! Right now, I am wishing I was FHA instead of conventional - Grrr.

Enough about loan stuff (but it is worth learning about if it applies to you), time to get to Menifee Real Estate! As always, I base my amounts on just Single Family Dwellings that are priced under $1,000,000. The highest close in Menifee in August was $394,990 as a side note! Additionally, make sure you remember that all the "Active" quantities are as of today - September 23rd, 2011. The Menifee "sold" and "closed" amounts are from August 2011. Let's begin:

Menifee Real Estate Trends Update - September 2011

* Total # of Active Houses Listed - 286
* Average Active List Price - $ 218,338
* Menifee Houses Sold in August - 99
* Avg. August Sales Price - $ 209,464
* Avg. Sold Days on Market - 80

So my most recent update was back in July. There are a few small differences when comparing Menifee property trends against July Active and June Sales. First, the complete amount of homes has changed from 260 in July to 286 in September, an increase of 10%. And the sales have decreased from 105 to 99, or approximately 5%. That is, in essence, two trends moving collectively downward which gives us the beginning of something to pay attention to.

However, the average sold price in June was $193,657 versus an average August sales price of $209,464, a growth of roughly $15,800 or 8% in selling price. That is incredibly intriguing as numerous indicators show a slow down and increased inventory but sales prices are rising. In addition, the Average Days on Market went from 69 days in June to 80 days in August. Therefore there are three signs pointing down however the big sign (price) is going up.

This needs to be watched closely because usually additional supply on the market indicates lower price. Short sales are certainly making an impact on stats and is able to mess with the numbers. I will be extremely curious to see what happens next month. I DO expect the large drop in interest rates to boost consumer activity and price point though. People can now afford far more homes since the borrowing rate is down.

That ends your installment for this month. I apologize for having to skip August 2011. I was on vacation for a week and that, plus the market moving so fast, truly had me sprinting the rest of the month! If you ever have any inquiries or would like to know something specific, just shoot out an e-mail or take a look at my internet site and I will be pleased to help!

Sincerely,

Stefan West, Menifee Real Estate Broker
951-894-6199
www.stefanwest.com