December 16, 2020
By Saeed Ghaffari
Thank a Realtor
One would expect the So Cal real estate market to hibernate or slow down drastically during the holidays with the pandemics footprints on employment and overall economy. It’s seasonally adjusting, but surprisingly other than that, it shows no sign of slowing down. 19.72% of the active listings hit the market last week and 22.09% of them were listed the week before.
The closings dropped by 5.58% from one week to another, but as it was mentioned, it only represents its normal adjustment for the season.
Coming Soon Inventory remained flat through the region and so did the properties with 100+ days on the market.
Sellers are dominating the market pretty much in every corner and who/what do they owe their advantage to? The 30 year fixed rate mortgages and the local real estate community. If I were a seller in this market and I was not afraid the Corona Virus, I would go hug a realtor today. But, I am not a seller and I am afraid of the virus too. So, I thank all the realtors for all their contribution to our local communities and economy. And if I were you, I would grab the phone and thank a realtor too.
Graphs below show a 5-week trend of the So Cal market on their respective data.
The decline in active inventory seems to be seasonal. One would expect this to be much worse with the Covid-19 spread around the southland and the country. With the vaccine distribution on its way and the congress reaching a deal on stimulus package around the corner, no drastic drop is expected on the market.
Although the we see a slight drop in the new listings on the market, they still represent 19.72% of the total active inventory.
Coming Soon inventory remained flat. Another 500+ new properties are about to hit the market soon. Undoubtedly, there are more properties being prepared for sale and will be coming to the market soon without being pre-listed on MLS.
Not much of a change in the inventory of properties with 100+ days on the market. A good sign.
The drop in Closed Listings inventory looks insignificant and seems seasonal. Thank goodness for the historically low interest rates.
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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.