The Davis housing market experienced modest growth in the third quarter. Sales and average home value both increased while homes sold at a similar pace compared to the same quarter a year ago. One hundred and sixty nine (169) homes (detached, halfplex, condos) sold in the third quarter, an increase of 3% from the same quarter a year ago. Home value increased six percent from $554,106 in the third quarter of 2014 to $586,386 in the third quarter of 2015. Average square foot price increased eight percent from $312 in Q3 of 2014 to $338 in the third quarter. And homes were on the market on average 28 days, a four percent increase from Q3 of 2014.
|Number of Sales||164||169||3%|
|List Price (Avg)||$562,773||$600,776||7%|
|Sold Price (Avg)||$554,106||$586,836||6%|
|Days On Market (Avg)||27||28||4%|
|SQF Price (Avg)||$312||$338||8%|
|Rent/ SQF (Avg)||$1.27||$1.41||11%|
Conventional financing for home purchases continues to dominate the market. Over two thirds, or 69% of home purchases were made with conventional financing, an eight percent decrease from the same quarter a year ago. Cash sales jumped 14% in the third quarter, making up a quarter of all sales. While, FHA financing remained low, but doubling from the same quarter a year ago.
CHARTS: Monthly Data 7/2014-9/2015
Fourth Quarter Outlook
My outlook for the fourth quarter of 2015 predicts the number of sales will begin to decrease as we enter the winter months. Inventory will begin to decrease as sellers with unsold listings pull them off the market. The average days on market will increase as the market tests out the new TRID lending rules. And home value growth will slow. Rates on average on a 30Y fixed mortgage in California are currently hovering around 3.7%. Rates will remain low for the remainder of the year.