The July LA Times DQNews Real Estate Activity Report is out. My eyes first went to San Juan Capistrano because we're in escrow to purchase a home there. 34 homes sold in July (good news) for prices 11.4% less than last July (bad news). Alarm bells immediately sounded in my head but subsided after I did a little research. After breaking out past DQNews reports, I found the following:
Jan - 33 Sales - $750,000 Median Sales Price - +27.2% from one year prior
Feb - 20 Sales - $1,151,000 Median Sales Price - +125.8% from one year prior
March - 29 Sales - $710,000 Median Sales Price - +13.6% from one year prior
April - 27 Sales - $530,000 Median Sales Price - -3.6% from one year prior
May - 24 Sales - $1,052,000 Median Sales Price - +54.7% from one year prior
June - 34 Sales - $790,000 Median Sales Price - -7.5% from one year prior
July - 34 Sales - $575,000 Median Sales Price - -11.4% from one year prior
You may be asking yourself, how could this information possibly comfort me. First, the number of sales every month is consistent. When you don't have a healthy number of sales, appraisal issues tend to arise. Second, the way the median sales prices vary so dramatically from month to month tells me that there are clearly some expensive areas that are throwing off the data. There's no way that homes are selling for $530,000 in April and $1,052,000 in May in the same neighborhood. I already knew that San Juan Capistrano had many different neighborhoods that varied in price greatly. Having only one zip code, 92675, the data is bound to be skewed. Back to the tried-and-true method of finding comparable sales in the immediate area I go.
To see how other zip codes performed in July, click here. If your zip code covers a smaller area, the data should represent your area more accurately.