May and June Murrieta and Temecula Valley Real Estate Housing Report
Our local housing market continues to show signs of recovery in May and June. Inventory remains tight. We have over 35% fewer homes on the market than this time last year. However, homes are selling strong and prices have been climbing. Let’s get into the numbers of homes sold for under $1,200,000 in Murrieta, Temecula, and Menifee.
In Murrieta, we had a total of 121 homes sold in May versus April’s 98 homes. That is an increase of 23.5%. May’s median sales price increased to $688,000, an improvement of $65,000 or over 10% of April’s $639,500. That is quite a leap and likely does not accurately represent the overall market. Let’s take a look at Temecula.
In Temecula, we had a total of 98 homes sold in May versus April’s 83 homes, an increase of 18%. The median sales price increased from $679,000 to $704,500, an increase of $25,000 or 3.75%. While that jump in price is impressive, it seems more typical of the general market as we have hit the selling season. Let’s look at Menifee for a third data point.
In Menifee we have a different story. May had a total of 136 units sold versus 138 in April, a decrease of 1.1%. The median selling price was $557,640 in May versus $564,495 in April, a decrease of $6855, or 1.21%. Menifee had more sales, more consistency, and better market balance in terms of buyers to sellers due to being priced $130k-150k lower.
In spite of high interest rates, values are rising in our local market because there are so few homes available. While May buyers remain price-sensitive, they paid an average of over $5000+ over asking for homes in Murrieta and Temecula. In April, they paid $5000-$8000 under asking. Home prices in Menifee reflect adequate inventory levels and are slightly leaning toward a buyer’s market. Also, May is often the top or in top three months annually for real estate prices.
Until we have more Murrieta and Temecula homes on the market, we will continue to see increasing prices. Homes are selling faster, but we still have an “affordability crisis” that will keep prices from getting too crazy. Right now, a $650,000 home purchase with 20% down ($130,000) and a 7% interest rate with taxes and insurance (PITI) is $4,327 per month. That is just not affordable for many families. Let’s see what next month brings and if this trend continues. In the meantime, Happy 32nd Birthday and stay shiny Murrieta!
Sincerely,
Stefan West
aka Mr. Murrieta.