The Davis housing market showed strong growth in the second quarter of 2015. Sales and values both increased, and homes sold at a faster pace compared to the previous quarter. A total of 181 homes (Single family detached, halfplex, and condos) sold in the second quarter, an increase of 148% from the first quarter and an eight percent increase from Q2 2014. Values increased 15% from $509,465 in the first quarter to $586,142 in the second quarter, and are up four percent from the same quarter a year ago. Similarly, average square foot price increased five percent from $320 in the first quarter to $335 in the second quarter. And, in the second quarter it took less than a month, on average to sell a home.
|Number of Sales||73||181||148%|
|List Price (Avg)||$516,718||$592,683||15%|
|Sold Price (Avg)||$509,465||$586,142||15%|
|Days On Market (Avg)||37||27||-27%|
|SQF Price (Avg)||$320||$335||5%|
|Rent/ SQF (Avg)||$1.24||$1.43||15%|
|Sold Price (Avg)||$419,500||$655,000||56%|
|Sold Price (Avg)||NA||NA||NA|
|Sold Price (Avg)||$273,742||$291,293||6%|
Distressed property sales–short sales and REO’s– made up only one percent of total sales in the second quarter, unchanged from the previous quarter. The percentage of short sales remained unchanged. There were two short sales in the second quarter same as the in the first quarter. The average sale price for short sales was $655,000. There have been no REO sales for the past two quarters.
Approximately two-thirds, or 65% of home purchases were made with conventional financing, an increase of five percent from the previous quarter. Cash sales remained unchanged in the second quarter, making up 29% of total sales. Similarly, FHA financing remained unchanged as well, making up four percent of total sales.
The number of sales will decrease in the third quarter. Inventory will remain flat. The average days on market will slightly increase and home values will remain flat. Rates on average on a 30Y fixed mortgage in California are currently hovering around 3.9%. Rates have been below 4.0% since October of last year. The Fed is not indicating an increase in rates until 2016. I expect rates to remain below 4.25% for at least the next quarter.
By Ken Konecny, REALTOR®