January 6, 2021
By Saeed Ghaffari
Gratitude in Our Attitude
With the rates as low as they are, we expect to see a very active real estate market in So Cal as you may from the above table and charts below.
The active listing inventory is flattening, meaning more listings coming in the market than leaving the market by closing, expiring or cancelling. This is validated by the chart below of New Listing with 7 days or less on the market.
A somewhat sharper increase (57.63%) in New Listings Inventory from 12/28 to 1/4 in contrast to a sharp decrease (47.59%) from 12/21 to 12/28 is good news to the real estate community. Although we have to take the holiday affect into consideration before we get too excited.
The number of stale listings, listings with 100+ days on the market, dropped by 6.95% also, lowering the total active inventory on the market. Good sign.
Coming Soon Listings flattened, as expected. Preparing and placing the property in the market is not a priority during the holidays. We’ll need to keep an eye on this category in the coming weeks to get a better read on the sellers’ activities.
Lastly, lenders, escrow and title companies got back to work, and the closings started to take place again, turning the curve around from a 29.93% drop to 4.69% rise in the two weeks compared. All and all things look good and whom or what do we thank for? The low interest rates, the increase in values and the sellers wanting to cash out, or anyone/anything else I missed? It really does not matter, as long as we have gratitude in our attitude.
Call Us Today
714 469 5529
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.