The end of 2017 has come and gone and in order to keep you, my prospective new customers, fully informed about Lake Chapala Real Estate, here are the final statistics for Real Estate sales for 2017.
There are no surprises in the fourth quarter sales results. In my previous blog, Lake Chapala Real Estate Trends 2017 Third Quarter, we noted a substantial increase in property values of 24% over the previous two quarters. This trend has continued. In the first two quarters we had an average home sale of $184,000. This has increased 17% to an average of $215,000 in the fourth quarter. Overall, if we compare the first two quarters to the second two quarters we see that prices have increased an average of just over 20%. Obviously, some more desirable areas have increased more and other more remote areas less.
Number of homes sold has continued to be strong. A total of 63 homes were sold in the last quarter of the year compared to the 55 homes sold in the third quarter.
New listings also remain strong, with a total of 39 new listings coming on the market compared to 41 in the third quarter. This is substantial and encouraging news when you consider that in the first and second quarter, there were only 21 and 26 new listings respectively.
However, the sales and listings have balanced themselves out. We are still suffering from very low inventory levels. In fact the total number of listings available has not changed when you include the number of homes already under contract and still stands at 314 listings. This low inventory number (half historical levels) will continue to put pressure on the market.
As our broker Marvin Golden states on the statistics page, total number of homes sold in 2017 compared to 2016 is up substantially. In fact, Sixty percent more homes were sold in 2017 over 2016 making it a banner year for all real estate companies Lakeside.
What's for 2018? The future is always hard to predict. I am going to go out on a limb and say that barring unforeseeable circumstances, demand should remain strong, and possibly even exceeding 2017. I also feel that new listings should remain strong as Lakeside residents take this opportunity to cash out and return to be with their loved ones for their final years. Construction is also booming with many projects started in 2017 that will be finished in 2018. This should help balance out the strong demand. Overall, I expect that average home prices will remain in the low $200's and may even creep towards the mid $200's if more demand ensues in 2018. Given the political situation in the United States, I wouldn't be surprised if that happens.
If you have any questions about living or buying in Lake Chapala then please contact me.
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