Contributing content writers: Horace Chavez DRE#01259508 | February 5, 2024
This is part 1 of a two-part series covering both single-family homes and condominiums. Today, we'll be summarizing market insights for the single-family housing market.
Since Coronado is an island, so is the real estate market. We generate unique statistics from our unique location, demographics, great community, quality of life demand, and second home market. The economics of real estate here can depend on many other factors that don't apply in a normal market. Many homes are purchased with little or no financing. Buyers looking to enter this market are clicking home searches on their computers from Washington, Canada, Arizona, the East Coast, Mexico, the Middle East and Asia. In the world. The market is stable because buyers are wealthy. Monitoring trends such as days on market and active inventory can help homeowners and buyers navigate the market.
Next, let's take a look at some trends to give an insight into the current situation compared to recent dates. Coronado's median list price this week is $4,295,000, compared to $3.8 million this time last year. These price points may be higher or lower at different times of the year as they reflect the type of inventory on sale at the time. It's the trend over time that we track to see which direction the price is going. For Coronado, it's a strong upward trajectory that could show signs of easing before rising again.
The active real estate inventory currently for sale is 42 units, up from 25 units this time last year. The most recent low was in the first week of April 2023, when only 13 units hit the market. The last time the market reached 42 units was in the third week of May 2021. Since then, it has been at a pace of 10 to 20 units, with some weeks seeing an increase of 30 units. We may see a decline in inventories before we see a seasonal uptrend in the summer.
The market is cooling down over time, and prices are expected to plateau for some time. We are in the seller's zone even though the MAI, Market Action Index (graph above) is consistently declining. Index number 30 is right in the middle. Therefore, it is more of a neutral market than a buyer's or seller's market. The last time it was below 30-26 was in October 2019. Historically, the Coronado Market Action Index has been stubbornly consistent in the 40s and 50s.
I would like to pay attention to changes in this index. If the MAI rises above 30 and resumes its rise, prices are likely to follow suit. If MAI falls below this number and into the buyer's zone, watch for downward pressure on price.
Things look bright. By metrics, Coronado Real Estate's single-family housing sector had a strong and stable year. The rally may accelerate at a slower pace and may fall before things improve again. Historically, there is no doubt that Coronado has always been and continues to be a favorite in the long-term and short-term vacation rental markets, as well as investors and families looking to participate in this great community. There's no room.
About the contributor: Horace Chavez is a broker associate at Coronado Shores Company as part of the sales team for The Shores Group Real Estate Advisors. Service areas include residential seller and buyer representation, investment properties and property management. He is also a certified Probate & Trust Specialist. “Having been licensed since 1999, I have seen quite a few. I recognize that every buyer and seller has their own unique interests and goals. This allows us to provide a high level of service to all of our clients.”
Contact Horace Chavez at 619-992-7001. Email: [email protected]
DRE# 01259508
Source: Altos Research, San Diego Association of Realtors
Disclaimer: This content is for informational and entertainment purposes only. The content shared is considered authoritative and is compiled from a variety of sources, including the author's perspective. It is not intended to provide or substitute for professional or personal legal, tax, financial, or accounting advice or services of any kind. Readers are strongly encouraged to seek professional advisors and advice regarding their own specific personal needs and circumstances before making any decisions or conclusions. Always check and know your options before making a decision.
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