Since we are now wrapping up the 1st quarter of 2018, we wanted to take the time to review the market in Highland, Ca. Highland California is an attractive real estate market. The city is located East of San Bernardino and is a growing Suburb of the Inland Empire. The city is broken up into two major parts often referred to as Highland and East Highland. Many buyers are attracted to the area because of the newer construction homes, the views of the valley, the school district and the quiet feel of the neighborhoods.
In the first quarter of this year, we have seen the average sales price jumped 3.9% with the average sales price increasing over $13,000 during the first three months of the year. We saw a similar trend occur in the market last year as prices in this area tend to peak during August. Last year, during August the average sales price was $343,500 and this year the market is looking like it will eclipse that number.
Highland is a great place to call home. On the eastern side of the city, you will find a large number of homes that were built after 1990. These newer homes were developed as part of master planned communities. The park-like feel and layout of the area attract many buyers to the city. In these communities, owners have access to many amenities. In one area the community even features a fishing lake for homeowners where they can fish year around. Although the city is catch and release, this quiet lake provides plenty of fun for the entire family. Other communities include access to a clubhouse and several pool areas throughout the neighborhoods. From speaking to the resident there, they appreciate the 24-hour security guards that roam the neighborhoods. These guards ensure that the communities remain peaceful and quiet and give great peace of mind.
Currently, low inventory is one of the reasons that prices in the area are on the rise. Over the last year, the average homes on the market have fallen from 148 homes to 98 homes according to 2018 N.A.R. statistics. That is over a 33% decrease in homes available on the market. The low supply is playing into the seller’s hand. With fewer homes to choose from seller’s are asking a higher price for their properties and buyer’s with fewer choices are willing to pay their asking price.
Buyers looking to purchase in the area are still able to find the right property. Highland real estate offers a wide array of property types in the area. From smaller square footage townhomes to large estate homes Highland can offer any buyer a floor plan that will work for them. When offering on homes in the area, buyers are encouraged to be approved for a home loan before falling in love. The average amount of days that a house stays on the market is currently 28 days. With homes moving quickly, the best homes are often sold within 3-4 days of being on the market. In this market, many sellers will not entertain an offer unless the buyer has obtained a pre-approval before submitting the offer. This means that serious buyers should get financing before looking is a critical step for getting the home of your choice.
Another reason for the rise in sales prices is the rise in interest rates over the first quarter. Americans have heard about the imminent rise in interest rates since the last election. Fortunately, during 2017 we did not see the interest rate rise take place. Well, we are here to tell you, the days of sub 4% interest rates are gone. During the first quarter of 2017, we have seen interest rates increase over 1/3 of a point with the average interest rate hovering around 4.75%. This has put a lot of pressure on the buyer’s in the market to get out and purchase a home.
If you are under the impression that the best decision is to wait to purchase a home you may find later that that thinking is flawed. Yes, the real estate market always cycles. We typically see the cycle every seven years. The last market cycle ending in 2010 saw one of the most significant depreciation in home values in the history of the country. We are already past that point of the next market cycle. Forecasters of the real estate market predict that home values will increase for the next 3-4 years barring any large changes in the national and global economy. With interest rates continuing to rise your decision to buy may come down to a math problem. If the interest rates rise to above 5.00% this year as expected, then the market would have to decrease over %30,000 to make the payment on the home equal. That is almost a 10% decrease in home values.
We do not expect to see that decrease in home values anytime soon. Since most of the owners in the area have either recently bought, refinanced or paid their home off in the last several years, we can safely assume that owners in the area can afford the payment on their current homes. If the average sales price in the area starts to fall the chances are that these owners will likely choose to stay in their properties longer. The mindset of these owners will cause a further lack of inventory available to prospective buyers and maintain the prices in the area.
Overall, Highland is a great place to call home. The larger floor plans, school district, and the quiet suburban feel make Highland a highly sought after area for prospective buyers. Over the next few years Highland should see a steady rise in prices which will allow the city to continue to add to the already robust supply of amenities. Call (909) 345.0909 to get the immediate attention of one of our highly supportive Highland real estate agents to find the perfect Highland home for sale.