Once again, Halloween in Valmonte did not disappoint! The Halloween tradition is one of the unique things that makes living in Valmonte lots of fun, and it was great to see all the families and kids getting into the spirit again this year. Our kids had a great time, and I know we went through over 500 pieces of candy at our home alone (and I know we were not alone)!
As for real estate, we are entering one of the traditionally slower times of the year. After a sales boost in August, October followed the September cooling trend in Valmonte. Inventory, measured as month’s supply, increased from 3.4 months supply in September to 4.3 months in October. Active listings for the month also reached a 3 year high with 17 homes available during the month. However, supply levels indicate the market still favors the seller as a balanced market is considered 6 months of supply. The increasing supply means that despite the high prices, we are reaching a more balanced market.
As for prices, Valmonte homes are just shy of record highs seen over the last 12 months. However, in the last few weeks with demand waning, prices of homes that have been on the market over 60 days are experiencing reductions. Prices in Valmonte continue to be a driver of activity. Homes priced under $1.5m continue to see the strongest activity and fewest days on the market. As you cross the $2m threshold, the time on the market increases. Of course there are exceptions in both price categories as unique homes or overpriced homes buck the trends. As has been the been case over the last 5 years, activity and prices typically drop as well head into the Holiday season. With 13 homes for sale in the neighborhood, buyers may find that this is the time to find their Valmonte home at a discount to the peak selling season seen in the Spring and early Summer months.
One question that remains to be answered is how long will prices hold both on a local level and throughout the region? We turn once again to interest rates with the belief that any significant rise could result in slowing sales and as a result, dropping prices. Of course, we have wondered for last several years when this interest rate hike will take place. Also, as of last Thursday, factor in the proposed tax plan which could limit mortgage interest and property tax deductions, and prices may cool off slightly. In the meantime, the overall economy keeps showing signs of strength with the unemployment rate at 10 year lows and corporate earnings holding steady. Throughout Southern California, demand still outpaces supply, and even with lower potential real estate tax deductions, and a slight increase in interest rates, it’s a safe bet we’re not heading for a real estate slump anytime soon.
