2020 has transformed the real estate landscape, especially Riverside County. The #3 Luxury market in the country is Riverside County.
The Trend
Riverside County's luxury housing market had an entry-level cost of $2.28 million in the fourth quarter, a benchmark that jumped 46% in 12 months. That gain was topped only by two Colorado counties near Denver: Jefferson at $2.97 million, up 81%, and Arapahoe, at $2.51 million, up 49%. Nationally, the $3.4 million luxury entry price was up 14% for the year.
The Dissection
Riverside County has the housing that meets the pandemic era's wants - spacious, nonurban living with some relative bank for the buck. That niche has proven to be harder and costlier to find. A Realtor.com scorecard ranked Riverside and San Bernardino counties as the U.S. market with the second-biggest drop in homes-for-sale inventory and the largest jump in overall listing prices at year's end. Who knew a pandemic could flame a homebuying frenzy for the upper crust's housing in California? This luxury ranking's 20 largest gainers were found in five other Golden State counties....San Luis Obispo: $3.34 million, up 44% in a year, the fourth-largest gain among 95 counties studied San Diego: $5.38 million, up 42%, No. 5 increase Santa Barbara: $18.87 million - the nation's price leader - up 40% No. 6 increase Monterey: $9.26 million, up 39%, No. 9 increase Contra Costa: $3.16 million, up 33%, No. 18 increase. Let's not forget two of Riverside County's ocean-proximate neighbors had luxury gains, too - albeit smaller upswings: Los Angeles County's $8.21 million entry price was up 16% (54th among the 95), and Orange County's $5.96 million was up 13% (No. 63).
How Bubbly?
On a scale of zero bubbles (no bubble here) to five bubbles (five-alarm warning)...FOUR BUBBLES! Riverside County has some swank neighborhoods -from old orchard homes to desert mansions to large, newly built homes closer to coastal cities. Understandably in this pandemic, there has been a rush to buy larger living quarters, especially for folks who can afford the move up. Low mortgage rates ballooned house hunter's buying power. But how long does interest remain in larger homes, especially in markets outside of job hubs, when the coronavirus (hopefully) is just a bad memory? It's all but certain that today's historically low-interest rates won't last forever. Huge appreciation rates in local housing markets are scary, no matter the underlying fundamentals. Any bubble anxieties are tempered by an educated guess that the gaudy numbers may be partly a statistical quirk - inflation caused by the transaction explosion at the upper end, not skyrocketing values.
As always, if you or if you know anyone looking to buy, sell, or invest in real estate. I would be honored if you would refer me.
Thank You,
Qierre McGlory
Keller Williams Realty
#01938370
(714) 577-2787
qierre.mcglory84@gmail.com
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