Dana Point Real Estate Home Sales Favor Sellers in May

Dana Point Real Estate Home Sales Favor Sellers in May

The Dana Point real estate market saw an increase in sales activity in May 2019, although the market is still highly favoring sellers.

Dana Point Real Estate Sales Activity

From the numbers in May 2019, it appears Dana Point real estate sales activity is increasing.

Although there were technically fewer homes sold in May than in April (53 in May vs. 54 in April), pending sales in May were higher than in April: there were 10 pending sales in May vs. 4 pending sales in April.

A pending sale means the home sale is under contract, and all contingencies have been removed. This means the sale is highly likely to go through, because cancellation of the contract by either the buyer or the seller after removal of all contingencies could result in potential legal liability for breach of contract.

When you combine actual home sales with pending home sales, you can see there was an overall increase in sales activity from April to May (53 sales + 10 pending sales = 63) compared with April (54 sales + 4 pending = 58).

It is common for residential real estate sales activity to increase in the summer, but so far the Dana Point real estate market is still favoring sellers, due to low inventory.

Low inventory generally translates to sellers obtaining multiple competitive offers from buyers looking for a home.

Dana Point Real Estate Inventory

The overall Dana Point real estate market in May had an absorption rate of 0.89 months. Absorption rate indicates how quickly homes are getting gobbled up by buyers.

An absorption rate of 0.89 months tells us that in a hypothetical world, if no new homes were listed for sale during that month, it would take less than one month for all of the Dana Point listings to be purchased by buyers.

In other words, at least from a real estate market perspective, it is a good time for sellers to sell!

When looking at inventory by price band, the price band with the highest inventory in Dana Point in May 2019 was in the $3-$3.5MM range.

In this price band, there was an inventory of 4 months, but 4 months of inventory still constitutes a seller’s market.

Generally: 0-6 months of inventory is considered a seller’s market; 6-9 months of inventory is a balanced market; and 9-12+ months of inventory is considered a buyer’s market.

As is normal for the Dana Point real estate market, the greatest number of homes sold in May 2019 was in the $1-$1.5MM price band: 9 homes were sold in this price band.

Close behind it was the $1.5-$2MM price band, with 7 homes sold.

Dana Point Real Estate Home Prices Increase

In May 2019 the average and median Dana Point real estate sales prices both increased:

  • Average Sale Price in May: $1,776,006
  • Median Sale Price in May: $1,050,000

The May 2019 average sales price was 28% higher than the Dana Point 6 month average, and the median sales price was 10% higher than the prior 6 month average.

Was the May increase in median and average skewed by the fact there was a home sold for $14,000,000 that month?

I don’t really think so.

The Dana Point real estate market is always subject to luxury home sales “skewing” the average and median prices, similar to the Laguna Beach and Newport Beach real estate markets.

Further, a higher average and median sales price in Dana Point jibes with the extremely low inventory we have seen.

So it seems safe to conclude home prices are going up, or at least are staying quite strong.

Any Good News for Buyers of Dana Point Real Estate?

Though home prices in Dana Point appear strong, the average days on market increased from 54 in April, to 67 in May.

This 24% increase in average days on market may point to an increased inventory in June (so stay tuned for next month’s post!).

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By | 2019-06-22T13:30:51-08:00 June 19th, 2019|Dana Point Real Estate Market Reports|0 Comments