As a leading Certified Residential Real Estate Appraiser in California’s Inland Empire, Hosking Appraisal Group spends a great deal of time researching trends and predictions in southern California’s housing market. We believe that knowing and tracking price and buying trends in the areas where we work is paramount to keeping our thumb on the pulse of the housing market. We research and share resources that can help us, our clients — and other visitors to our site — make more confident and healthier decisions when considering real estate options and opportunities.
Recent Housing Market Trends
Unless you’ve been residing under a rock, you’re well aware that we’ve experienced astronomical growth in real estate values the past few years. Our tracking of the Inland Empire housing market in this blogpost from 2017 shows just how much the region’s home values have exploded in a five-year period. The average home price in Canyon Lake in 2017 was $374,000. Redfin recently reported that in June 2022, the average home price was nearly $620,000, a 60% increase in value! Proof that we’ve been experiencing a sizzling hot market with record low interest rates and record high home prices. Market inventory has also been historically depleted, causing a bevy of bidding wars that have driven home prices skyward.
Change is in the air …
As we navigated the first half of 2022, inflation arrived (as predicted) and the mortgage rate jumped from 3.22% in January to 5.57% in August. Market inventory is also growing and fewer people are actively shopping for a new home. One of many reasons is that elevated home prices combined with higher interest rates (and record-high gas prices, especially painful for commuters) have made home buying downright unaffordable for many SoCal residents.
Homes are also staying on the market longer, which means fewer bidding wars and signs of a decline in urgency to buy. This recent article in the LA Times reports that nearly 30% of homes in the Los Angeles/Orange County market had price cuts in June of 2022. In the Inland Empire, nearly 19% more homes were on the market in June 2022 compared with the same period the year prior. Homes are staying on the market longer and month-to-month inventory continues to expand.
An Indefinite Future, at Least for Now
Whether these new housing market trends indicate that home values will decline or simply that the rate of home appreciation will slow remains to be seen. But keep in mind there is still a shortage of housing in Southern California and a lot of buyers who are actively in the market to purchase a home. There is no cut and dry answer as to what the future holds, but we’ll continue to track this increase in supply and decrease in demand, as well as home value trends in the ever-changing southern California real estate market.
HOSKING APPRAISAL GROUP 22860 Compass Dr Canyon Lake, CA. 92587 Phone: (951) 294-1955 Email: email@example.com
As a southern California property appraiser, each year I attend Valuation Expo, the country’s largest trade show for real estate appraisers. It’s an incredible forum for learning, networking, and gleaning insights and forecasts on the future of the real estate market. This year’s expo at the Bellagio in Las Vegas was a brilliant collaboration on ideas and forecasts!
So what’s the consensus, you ask? The country’s largest lending institutions, real estate corporations, and appraisal management companies (AMCs) are each aligned this year in their projections that the housing bubble and prime seller’s market we’re currently experiencing is headed for a substantial correction. And soon! (Nothing like the correction and recession of 2008 expected, but notable, nonetheless.)
And what does this mean for the economy? Buyers and sellers? Realtors and Property Appraisers? Interest rates? Stock and bond markets? The construction industry? All that remains to be seen, and the next several months will no doubt involve disparity and some distressing fluctuations. But they’ll eventually deliver lucidity — allowing buyers, sellers, agents, appraisers, and lenders to plan and budget accordingly. After all, the past few years have seen price spikes and bidding wars that are unprecedented, and corrections are critical for long-term market stability.
So please stay calm, carry on, and plan accordingly. The housing industry may be headed for a significant adjustment, but as the great Helen Keller once said, “A bend in the road is not the end of the road, unless you fail to make the turn.”
As a licensed Riverside County Real Estate Appraiser, Hosking Appraisal Group valuates homes in dozens of communities throughout the Inland Empire Property Appraisal market. This vast southern California region spans a whopping 4,850 square miles, and over 17,000 homes are currently on the market in Riverside County alone. And depending on location, home condition/upgrades and a variety of other economic factors, average residential property values are remarkably diverse. For instance, the home value based on Hemet real estate appraisals averages just over $233,000 while Corona real estate appraisals calculate average home values around $426,000:
Riverside County Average Home Value Statistics
Based on 2016-2017 Market Research (Values are approximate to the nearest $1,000)
As a proud veteran of the US Navy, I’m honored and humbled to stand with veterans and current military personnel serving all branches of the US Armed Forces. The freedom we Americans enjoy – and often take for granted – has been bought and paid for by the blood, grueling commitment, and sacrifice of millions of American men and women.
So when the opportunity arose to apply for admission onto the VA Appraisal Panel (the most difficult appraisal committee to be accepted onto in property valuation), I was again honored to begin the process.
In order to become a VA Fee Appraiser, Hosking Appraisal Group must be considered one of the highest quality residential real estate appraisers. An appraiser cannot simply request to be on the panel in order to gain access. It takes excellence in business. As senior appraiser and president of Hosking Appraisal Group, the buck stops with me. We’ve spent 15+ years submitting accurate, top-rate residential appraisals for every client. Appraisals are thoroughly analyzed by our team before they leave our office, and they’ve been delivered on-time every time.
The certification/continuing education process for a California property appraiser is ongoing, even grueling at times. Hosking Appraisal Group is – and always has been – current with the latest certifications, modifications, and changing legalities in the appraisal process. Our goal is to be the highest quality residential property appraiser in the Inland Empire. We’re proud of our efforts. We won’t stop until we’re there. And we’re now one step closer …
As a member of the VA Appraisal Panel, I am once again honored and humbled to help my fellow veterans. This time it’s off the base and battlefield; it’s at home.