LAKE COUNTY, Calif. — The latest information from the Lake County Association of Realtors shows a drop in home prices and home sales this summer.

Over the month of July, a total of 77 single family homes were sold through the multiple listing service, compared to 76 in June and 89 sold a year ago during the month of July 2023. These include traditionally built “stick-built” houses as well as manufactured homes on land.

There were six sales of mobile homes in parks in July, compared to nine sold in June and five sold in July last year. For bare land (lots and acreage) 18 were sold in July, compared to 23 sold in June, and 29 were sold during that time period the previous year in July 2023.

There are 452 “stick built” and manufactured homes on the market right now. If the rate of sales stays the same at 77 homes sold per month, there are currently 5.87 months of inventory on the market.

That means that if no new homes are brought to the market for sale, in 5.87 months, all of these homes would be sold and there would be no homes available for sale. Less than 6 months of inventory is generally considered to be a “sellers’ market” while more than 6 months of inventory is often called a “buyers’ market.”

The inventory has crept downward a bit from June, when 6.1 months of inventory was available. Agents are currently reporting a lot of buyers looking but few writing offers on properties.

The total percentage of homes bought for all cash in July: 30% (compared to 34% for June and 38% for a year ago in July 2023); 42% were financed by Fannie Mae or Freddie Mac (“conventional loans”) compared to 39% for June and 34% for July 2023; 16% were financed by FHA (compared to 17% in June and 18% in July 2023); 8% were financed by the VA or CalVet (compared to 7% in June and 1% for July 2023); 5% had other financing such as private loans, USDA, or seller financed notes (compared to 3% in June, and compared to 9% for July 2023). None of the closed sales in April were reported as an assumable loan that was assumed by the buyer.

The homes in July sold at an average of 97% of the asking price at the time the property went under contract, but an average of 94% when compared to the original asking price when the property first came on the market. This means that the asking home prices had been reduced from their original list prices before an offer was accepted.

In June, homes sold for 97% of the asking price at the time the property went under contract, and 94% of the original asking price. A year ago in July, homes were also selling at 97% of the asking price at the time the property went under contract and at 94% when compared to the original asking price.

The average time on the market for residential properties in July was 91 days, compared to 71 days in June and 50 days a year ago in July 2023.

The median sale price of a single family home in Lake County in July was $250,000, which is much lower than the $330,000 median sale price for June, and also lower than the median sale price a year ago of $320,000 during July 2023. This would indicate that during July, many more lower priced homes were selling to bring the median sale price down compared to June and
compared to a year ago in July.

The median asking price of homes on the market right now is $375,000; in June the median asking price was $395,000.

By now you’ve probably read or heard about the significant changes happening in real estate and how those changes will affect home buyers and sellers.

One of the new requirements is that buyers must sign a written buyer representation agreement before touring a home with an agent. This is a positive development for both consumers and agents because it facilitates conversations to help homebuyers better understand the process and learn the right questions to ask agents, including what they’re going to do for their clients and how they get paid for their services.

The agreement explains how your Realtor will act as your dedicated and professional guide. It also outlines their ethical and fiduciary duties to represent you to the best of their ability and records exactly what and how they will be paid for their services.

The terms of the agreement are negotiated between you and your Realtor. Together, you decide how long the representation lasts, and when and if to extend or end the agreement.