McCormick Ranch June Sales Update

The end of the school year generally marks the beginning of the stale selling season. Summer is in full swing, and although the temperature has been fairly moderate recently, the intense summer heat is just around the corner. While much of the country uses this time of the year to change schools and move to a new home, the thought of moving in 100+ degree temps here just makes everyone shudder.

However, we aren't quite there. May sales were still strong and the spring selling season was in full swing.

There were 61 homes in McCormick Ranch that changed owners last month. On my previous sales update post, I expected that 60 homes would sell so this is right in line.

This is a slightly higher number compared to previous years so we are still making up for a soft 1st quarter sales.

May 2016: 48 sales

May 2017: 45 sales

May 2018: 57 sales

With the uptick in sales, prices per square foot were flat or even slightly down compared to the prior month. However, the long term trend has still been upward so this doesn't mean a whole lot right now.

Homes are still moving extremely fast, and selection is very limited. This has a chance to push prices up over the coming months. Days on market is between 50 and 68 depending on the type of home. This is historically very low.

For June, we start the month with 66 homes under contract and only 93 active listings. I'd expect 60-65 of these to close by the end of the month. This would be another very busy month.

At 93 active listings, we are only showing around 1.5 months of inventory. This could also put some more short term pressure on prices.

Looking ahead, there could be a couple of interesting economical facets that affect local sales.

First, interest rates have absolutely plummeted over the last month. 30 year mortgage rates are once again around 4%. Lower mortgage rates result in a lower payment and a higher borrowing ability. This can increase home prices.

On the flip side, the trade war is back in full swing and many economists aren't as giddy about the future aspects of the economy. This can take a longer time to affect home sales but we cannot discount it even in the short term.

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Have a great June!

-Randy