Davis Housing Market Update-Q2
More homes sold at higher values, and at a quicker pace in the second quarter compared to the first quarter of 2014. The number of sales doubled from 76 in the first quarter to 158 in the second quarter. The average sold price increased 2% from $552,168 in the first quarter to $562,347 in the second quarter. The average square foot price increased 7% from $298 in the first quarter to $320 in the second quarter. The average days on market (DOM) in the second quarter was 23 days, a decrease of 41% from the first quarter. The average sale price percentage to list price percentage remained strong and unchanged from previous quarter hovering around 99.9%, meaning that homes sold very close to list price.
Distressed property sales were mixed in the second quarter. Short sales were down 68% from the previous quarter, but REO sales which made up only 3% of total sales in the second quarter jumped 141% from the previous quarter.
About three fourths of home purchases were made with conventional financing. One fifth or 20% of purchases were made with cash. FHA financing made up less than 2% of purchases. Quarter to quarter the use of conventional financing slightly increased, cash financing slightly decreased, and there was a significant decrease in the use of FHA financing to make home purchases.
|Avg Rent/ SQF||$1.25||$1.24||0%|
|% Short Sales||4%||1%||-68%|
|% REO Sales||1%||3%||141%|
My outlook for the third quarter predicts, the number of sales will decrease, days on market will increase, and home values will remain flat or increase marginally. Rates on average on a 30Y fixed mortgage are currently hovering around 4.1%. Supply has increased over the past two months. If supply continues to increase or if rates jump there will be downward pressure on prices.
Download the report here Davis Market Update Q2.