LAKE COUNTY, Calif. — The latest report on home sales from the Lake County Association of Realtors shows a continued slowing in sales and lower sale prices.
The association said a total of 51 homes were sold through the multiple listing service, or MLS, in February, compared to 55 in January and 86 in February 2022.
Those sales include traditionally built “stick-built” houses as well as manufactured homes on land.
There were five sales of mobile homes in parks, compared to seven in January and one sold during the same time period last year.
The association said there also were 18 sales of bare land (lots and acreage) last month, compared to 21 in January and 50 in February 2022.
Currently, the association said there are 269 stick built and manufactured homes on the market, compared to 285 in January.
If the rate of sales stays the same at 51 homes sold per month, there are currently 5.2 months of inventory on the market at the moment compared to 5.1 months of inventory a month ago in January, and 4.26 months of inventory in December.
That means that if no new homes are brought to the market for sale, in 5.2 months all of these homes would be sold and there would be none available.
Less than six months of inventory is generally considered to be a “sellers’ market” while more than six months of inventory is often called a “buyers’ market, the association said.
The association said the interest rate hikes and inflation have played a major role in reducing the number of active buyers.
In February, 47% of all home sales were for cash, compared to 16% for January and 36% for this same time last year.
Of those total sales, 24% were financed by Fannie Mae or Freddie Mac — which are considered “conventional loans” — compared to 36% in January and 38% in a year-over comparison.
Sixteen percent of the homes sold in February were financed by the Federal Housing Administration, or FHA, compared to 20% in January and 20% in February 2022, and 15% were financed by the Department of Veterans Affairs of or CalVet, compared to 4% for December and 6% for this time last year.
Another 6 percent had other financing such as private loans, US Department of Agriculture or seller-financed notes, compared to 11% in January. No such financing was used in February 2022, the association said.
The association reported that the homes in February sold at an average of 96% of the asking price at the time the property went under contract, but an average of 91% when compared to the original asking price when the property first came on the market.
In January, homes sold at an average of 95% of the asking price at the time the property went under contract, but an average of 88% when compared to the original asking price when the property first came on the market, according to the report.
And a year ago during February, homes were selling at 100% of the asking price at the time the properties went under contract, and 95% of the original list price when the properties first came on the market, the association reported.
The median time on the market in February was 99 days, compared to 57 days for January and also 57 days for this time last year.
The median sale price of a single family home in Lake County in February was $235,000, lower than the $292,000 for January and lower than the median sale price of $324,950 during this time period last year.
The association said this indicates that the lower priced homes are selling in greater numbers than the higher priced homes.
In February, 30% of homes sold had seller concessions for an average of $10,085. That’s compared to 47% of homes in January that had seller concessions for an average concession of $9,100 and a year ago 16% of homes sold had an average seller concession of $8,225.