December 9, 2020
By Saeed Ghaffari
The active listing inventory tapered off last week in comparison the week before, mainly because the it was a comparison between a full week vs a 4 day Thanksgiving work week. Although some realtors work pretty much around the clock, 7 days a week, every week, some chose not too and the sellers chose to hold off from listing during the holidays. Although the drop slowed down, nonetheless, the active listing inventory is still lower than the week before, even though the new listings this week went up by 46% in average across So Cal. The combination of a drop in active listings and rise in new listings is indication of busy sales market, meaning all the active listings changing status to pending or under contract and not too many cancelled and expired ones.
The coming soon listings inventory in a 7-day work week was lower than the 4-day previous work week, a clear indication of the holiday impact on the market.
Good news! New listings went up right after the thanksgiving holidays, meaning the coming soon properties are ready to be shown and moved along. In a hot seller market, you ought to be fast and competitive to get yourself in escrow.
Stale inventory, 100+ days on the market lowered by 3.4% and that’s good news for those sellers who have been patiently waiting for a reasonable offer on their property. Kudos to them and their agents.
Closed inventory was up by 46% across the southland from one week to another. I would say it was because the lenders, the title companies, escrow companies and the county recorders offices worked 3 days in the previous week as opposed to last week. Let’s hope the trend continues through the rest of the year.
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Should I Wait For Housing To Crash Further Before I Buy A House? 3 Reasons The End of 2022 Could Be The Very Best Time To Jump In
Prices falling in expensive cities
In two-thirds of major regional housing markets — 98 out of 148 — prices continue to drop, especially in more expensive locations.
We may see expensive markets fall further, which if that happens sooner than later, would make it an excellent time to buy into an expensive market. This wouldn’t have registered as a possibility even a few months back.
It’s difficult to predict if this will happen. And if so, whether falling prices become offset by the federal interest rate hikes practically certain to arrive in the coming months.
The only way to know for sure is to wait until the latest rate hike sets in.
Meanwhile, keep in mind that — as with any investment — it’s best time to buy is usually when prices are low.
With mortgage rates dropping and fee changes in the pipeline, now may be the time to buy that home Do you like this Article ? Sign up HERE for your FREE M&M Account to receive more Real Estate related information and news and THIS article. M&M Membership...
The days of waiving contingencies such as appraisals and forgoing inspections are fading into the rearview mirror. Still, contract activity remains slightly competitive depending on your location.
At least 24% of buyers waived the inspection contingency in December 2022, according to the National Association of Realtors confidence survey, up from 16% a month prior and 19% one year ago. An additional 24% of buyers waived an appraisal contingency in December, up slightly from 16% in November and 21% a year ago.
Home inspection contingencies are particularly important because it can let you know if there’s a deal-breaking issue with the property before a purchase occurs. It can also help you negotiate repairs with the seller, which is becoming increasingly common in today’s market.
“If buyers have this short window to buy where they can get incentives to purchase, [they] would rather buy where they have an opportunity to really think about it, get an inspection, a financing contingency and not feel rushed,” Jeff Reynolds, broker at Compass and founder of UrbanCondoSpaces.com, told Yahoo Finance.