Whether you’re planning on buying or selling your home this year, it’s important to stay up-to-date on the local real estate market. Being armed with the right knowledge and information will help you strategize more effectively when the time does come.
The last few years have taken buyers and sellers alike on a roller coaster ride. In 2019-2021, the pandemic frenzy attracted a huge crowd of buyers, driving up home prices to record-breaking highs. Starting around May 2022, the interest rates began to increase from their historic lows and we saw the market start to slow down. At the start of 2023, many people were uncertain of where the real estate market was headed.
Now, with the first quarter of the year behind us, here is what the data shows for the city of Chino and why it’s significant.
Average Days on Market (DOM): 54
Days on market is a measure of how quickly the real estate market is moving. Between late 2020 and early 2022, the market was at its peak, with the average days on market hitting an astonishing 13 days during Quarter 3 of 2021. There were too many buyers and not enough homes, so the few that were available flew off the shelves in a matter of days. Around Q3 of 2022, the pace of the market slowed down considerably and the days on market began to rise. In the first quarter of this year, the average home in Chino was on the market for 54 days.
Compared to Q4 of last year, that’s an increase of nearly 46% - most likely caused by the spike in interest rates. When rates rose, many buyers stopped their home search. The remaining crowd of motivated buyers were forced to compete over the limited inventory. The highly desirable homes were snatched up quickly, while less popular properties ended up sitting on the market for weeks. The market may pick up during the warmer spring season, but we predict that the average days on market will continue to settle around 40-55 days.
Total Number of Homes Sold: 143
During the peak of the buyer frenzy, the average climbed up to 289 homes sold during Quarter 4 of 2020. In the first quarter of 2023, the average was only 143 homes. (That’s less than half!) While there is still a strong crowd of active buyers, there just aren’t enough homes for sale to meet the demand. As a result, the average number of homes sold has declined.
This is also partly because not all homes on the market are desirable. The beautifully updated, move-in-ready properties that are priced at market value are all selling, but the ones that are overpriced or not in great condition tend to stay on the market. But that’s not to say that your home must be stunning and pristine in order to sell! You just need to find a knowledgeable agent who knows how to correctly navigate the market.
Total Number of Homes Currently Listed: 63
Similar to the average for homes sold, the number of homes currently listed shows that we are still in a housing shortage. With inventory so low, the market index is pointing to a strong seller’s market. For homeowners who fear they missed their opportunity when the market was hot and home prices soared, now is the time to sell.
Currently, there are only 63 homes for sale in the entire city of Chino. Normally, there would be more than 100 homes on the market at any given time. Since the spring market just started, we may be seeing more listings go active in the next few months, but we aren’t expecting inventory levels to increase drastically any time soon.
Average Home Prices
Clearly, inventory is low, but how does this affect home prices? Well, with so little homes available, the competition among buyers has picked up, driving home prices up again. Prices skyrocketed in Quarter 2 of 2022, for an average of $751,300 in Chino. It dipped down to $709,501 for the last quarter of 2022, then rose to $719,371 for the first quarter of this year.
Historically, home prices have almost always increased year over year, plus California home appreciation is generally higher than the rest of the country. For example, Quarter 1 of 2019 had an average home price of $491,568. 4 years later now, that number has jumped by more than $200,000! While it is highly unlikely we will see as big of an equity gain as during the pandemic, now is a great chance to take advantage of the rising home prices to cash in on your hard-earned equity.
Average Interest Rates
During the pandemic, interest rates dropped to record-breaking lows (2-4%), bringing a huge crowd of buyers to the market. Now, in an effort to fight inflation, The Federal Reserve continues to raise the interest rates. For the 30-year fixed mortgage, average rates hit their peak in Q4 of 2022 at 7.08%. They dipped down through January of this year, then spiked back up in February, with the rates leveling off in the low 6% at the end of March.
Following their meeting on March 22, The Fed announced a 25-basis point increase, but it’s difficult to say what effect this may have on mortgage rates. Bankrate’s chief financial analyst Greg McBride said, “Expect mortgage rates to yo-yo up and down in the first half of the year.” Experts are predicting that interest rates will stabilize by the end of this year around the 5% range. For buyers who are on the sidelines because of the rates, it’s important to find the right solution that matches your situation rather than focusing on the interest rates.
In conclusion, the first quarter of 2023 pointed towards a strong seller’s market for the city of Chino. Average days on market slightly increased, inventory levels remained low, home prices climbed up again, and interest rates continued to fluctuate.
Keep in mind that the scenario is not the same for every neighborhood, and certainly not the same for every city. That’s why it’s important to choose an agent who is an expert in your local area.
Ask the local experts!
Want a market report for a different city? Curious to see how this information affects your unique situation? Have more questions about the real estate market? Whatever the case, we’re here for you! Schedule a quick phone call with our team below.