Market Condition Report for The High Desert Region 06/08/2007
Resale market only.  Some new homes, government, For Sale By Owners, out of area transactions excluded.  Report
intended to be generally descriptive of market condition and direction, not definitive.  Report is date of report minus 60 days.
Archives

  

History of Median Price
2005-2007

       Area Totals


Sales This Year to Date VS
Last Year to Date


Relative to the same period last year, the market in
terms of resale transactions is off about 49%. 
The market has slowed by 2 percentage
from the last report (May –47%).

Percent Selling
Market Efficiencies by Month

Supply and Demand By Price


If one were asked about the condition of the Victor Valley market, the rigorous correct response would be “relative to what time period and what price class.”  Relative to price
class the reader should review the “Distribution of Supply/Demand by Price.”

Since the last report the ratio of supply to 60-day demand has shifter from 9 to 1 to 11 to 1.  This means for each unit of demand there are 11 units of supply.

In general, this should be interpreted as market movement in favor of the buyer. 

Note the weakness of high-end properties.   In general, this outcome is at odds with other areas surveyed in this price class.

 


 


These comments and opinions are designed to accompany the Market Condition Report above.

MARKET QUICK LOOK

Supply (LISTED) increased from the last report; however, demand (SALES PER MONTH) slipped by 29 units to 231.  The rate of failures also increased, but only slightly.  Consequently, PERCENT SELLING (market efficiency) was reduced to 23%.  The 60-DAY ABSORB RATE (market speed) also declined to 10% while DAYS SUPPLY increased significantly.  In general, the market is continuing in its movement toward the buyer. 

LIST PRICE ALL weakened to $346K.  ASK AT OFFER actually increased $1,000, as did CLOSE PRICE which increased to $305K.  These favorable price movements (seller perspective) should be considered as a temporary aberration.  The current list price of properties in escrow is $299,900 signaling future declines ahead. 

Inventories of sale pending (short term demand) remained very steady. 

Strongest Sub-Market:  Pinion Hills at 35% selling, 16% ABSORB RATE, DAYS SUPPLY of 392, closing in 171 days at $199K. 

Weakest Sub-Market:  Oak Hills at 16% selling, 5% ABSORB RATE, DAYS SUPPLY of 1,213, closing in 141 days at $499K.  This sub-market is exceptionally slow and lethargic.

TIP:

Buyers’ agents organize demand; sellers’ agents organize supply.  Buyers’ agents seek out the best values to show to their buyers-not all values.  Most properties fail to attract the attention of buyers’ agents because they are not best values.  Best value status is achieved through pricing relative to current competition, not promotion.
 

 

Data Supplied by Chicago Title

Market Condition Report

HighDesertRealEstate.org  -  AppleValleyHomesForSale.com -  HesperiaHomesForSale.com  -  VictorvilleHomesForSale.com