September 8 Weekly Update

Two new listings this past week in The Meadows, and they are displayed with yellow highlight on the list.

No homes went into Pending.

One home Closed Escrow: 10131 Sage Hill Way, a 4/3 of 3,321 s.f. Closed Escrow at $462,500 having been on the market for 32 days.

Partly the lack of activity has to do with the paucity of listings below $400,000, the primary market for investors and first-time home buyers, and part of the activity lack is the imminent closing of the main warm-weather selling season.

We continue to have good activity in all ranges of houses as measured by inquiries, MLS viewings, showings, and flyer activity, but actual offers are scarce in the upper levels of house prices. Houses at $500,000 and up are usually the “move-up” market, and that depends upon solid economic activity in the entrepreneurial and corporate markets. While stocks are high, and profits are up, there is still uncertainty in the jobs market and so executives are wary in buying executive and luxury level housing.

As soon as the political season ends, there will be some certainty in the economic markets – more with one candidate than another – but sufficient certainty to establish a business and housing market for the next year.

The wild cards are the European EURO mess, and the potential for war in the Middle East, either in Syria, or between Israel and Iran. Either will roil both the political arena and the economic arena. The world’s largest container shipping corporation is increasing both tonnage and rates between the US and Asia, while dropping tonnage and rates between the US and Europe – a vote of no-confidence in the European economic situation. Europe is 25% of our export market, so they matter.

All of this impacts the US housing market – less so in Southern California, but it sufficiently increases concern to impact confidence and ALL markets, but particularly high-value markets like real estate, are confidence driven.

We will know the housing market better in the March/April time frame. The Winter months last year were active, but turned hot in March. Absent unexpected Middle East or European problems, we can expect the same relatively quiet but continued active Winter months.

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