VBJ May 22

THE VALLEY BUSINESS JOURNAL
www.TheValleyBusinessJournal.com
23
Welcome to the
REALTOR® Report
by
Steve Fillingim
As I ran the numbers for this month’s report, all I could think was WOW; March was a
busy month!
You’ll see the details on the following
slides, but I will highlight that
the transaction value of sales in our
region increased by over $220 million
from the previous month! That’s the
largest increase since I took over this
report just over a year ago.
The median home price in Southwest
Riverside County had a slight
increase of 2% from a month ago
($593,378/$584,200), was up 19%
from a year ago ($500,000), and up
an impressive 46.5% from 2 years
ago ($405,000). Unsold inventory is
still hovering just over 2 months (6
months is considered a healthy market),
and days on market decreased
from last month to 8 days, up from
5 days last year but still significantly
lower compared to 20 days 2 years
ago. Unit sales are up a remarkable
36% from the previous month and 3%
from last year. Inventory saw a minor
increase of 2% from last month and is
up an incredible 49% from last year.
Median prices are up in all of our
local cities, ranging in an increase of
12.7%-29.2% Year-Over-Year.
Next month’s numbers may paint
a different picture. Over the past few
weeks, there have been drastic changes
in interest rates, specifically a sharp increase
in 30-year fixed-rate mortgages.
In March, the Federal Reserve increased
the Fed Rate for the first time in the past
few years by 0.25%. This rate is different
from the mortgage rate consumers
pay, which has jumped to over 5%.
The market is anticipating multiple rate
increases throughout the year (possibly
7-10) and has priced mortgage rates in
anticipation of those increases to help
control inflation.
So while this is a significant change
now, it’s unlikely that we will see these
changes again in the next 12 months.
The rate increase has a significant impact
on affordability and will surely slim out
the buyer’s pool as those buyers either
have to consider a smaller purchase or
find themselves unable to purchase here
altogether.
On the Legislative Front, there is a
housing bill that has been drawing a lot of
media attention. AB 1771 (Ward) would
result in homeowners who, at the time
they sell their property, are not owner
occupying the property and do not qualify
for the homeowner’s exemption to
pay up to a 25% tax on the gain from the
sale of a home in the first three years of
homeownership. A lower but significant
amount of tax would also be owed until
year 7. We are strongly OPPOSED to
this bill and have been fighting against
it while working with a large coalition
of real estate and lending interest groups
who also oppose this bill.
I knew 2022 would be busy, and
we’re only getting started. If you’d like
a copy of my entire report including
the mentioned slides, or to be added to
the distribution list, please email me at
Adam@srcar.org.
As always, I am available if you have
any questions about the report. Until next
month…
REAL ESTATE
by Adam A. Ruiz
This rate is different
from the mortgage
rate consumers pay,
which has jumped to
over 5%. The market
is anticipating
multiple rate
increases throughout
the year...
TEMECULA’S PREMIER GOLF TOURNAMENT IS BACK JUNE
CONTINUED FROM PAGE 1
So come on out, play a round of
golf, network with others, advertise your
company, generate business, and most
importantly, have fun! We would like to
thank and recognize, The Law Offices
of Rosenstein & Associates, for their
support as the Title Sponsor for the fifth
year in a row.
Reservations to play can be made
by visiting www.temecula.org. Individual,
as well as foursome reservations,
are available. Individual golfers will be
assigned to a team of four. Every two
golfers will have a dedicated golf cart
reserved for their gameplay. Each player
will receive a golfer goodie bag full of
fun promotional items donated by local
businesses and is invited to the banquet
dinner provided by Temecula Creek Inn.
About Temecula Valley Chamber
of Commerce:
The Temecula Valley Chamber of
Commerce is a non-profit organization
based in Temecula, CA. The Mission of
the Temecula Valley Chamber of Commerce
is to promote positive economic
growth while protecting the environment
for all business and by doing so, support
the programs which preserve and
improve the quality of life for the entire
community. To learn more about the Temecula
Valley Chamber of Commerce,
please click here. For more information
regarding upcoming events, please click
here to view the events calendar or
contact the Temecula Valley Chamber
of Commerce at 951-676-5090 or email
info@temecula.org.
Follow the Temecula Valley Chamber of
Commerce on social media:
Facebook:
www.facebook.com/temeculacc
Instagram:
www.instagram.com/temeculachamber
Twitter:
www.twitter.com/temvalchamber
LinkedIn:
www.linkedin.com/company/
temecula-valley-chamber-of-commerce
Special Early Bird Pricing
(Purchase before April 30, 2022):
Single Reservation: $175
Regular Pricing (Starts May 1,
2022): Single Reservation: $200,
Foursome $800
Please contact Amber Poncy at
Amber@temecula.org or call
(951) 676-5090.