January 20, 2021
By Saeed Ghaffari
MLS Data provided courtesy of Real Estate Legends, USA
I was on a zoom event last week, listening to Dr. Ramon Sfeir, Professor of Economics and Management Science with Chapman University, forecasting the economy for 2021. It sounded like a daunting task to put together so much data and come up with the algorithm to project the economy, especially as accurately as Chapman does.
This is why I stick to reporting and explaining data and quoting others, instead of forecasting and projecting the economy.
Getting back to what we do, the active inventory in So Cal was pretty much steady, with a very insignificant drop, .32%. The highest drop was in Ventura County at 4.28% and that is because the data sample is way smaller than other counties, it stands out.
The good news is that New Listings inventory went up almost every county with the exception of Ventura County that had a 5.3% drop. LA county experienced the biggest serge in new listings with a 106.64%. Orange, Riverside, and San Bernardino counties all had double digit increases in new listings and San Diego had a small, 1.13% increase on new listings.
Stale listings, listings with 100+ days on the market went down on all counties except for Ventura that had .88% increase on the listings in this category.
The pre-listing inventory of properties, Coming Soon inventory was up in double digits in all counties, except for San Diego that had a drop of 5.45% and Ventura that showed 5.88% increase.
Closing activity was split among the counties, LA, Riverside and Ventura were up and Orange, San Bernardino and San Diego were down. The overall average for So Cal was up by exactly 4%.
The graphs and the table on this article are provided for those who appreciate visuals in addition to plain text.
As stated above, we let the economists do the forecasting and we’ll do the reporting of the data and interpreting its impact on different groups, sectors and the overall economy, ECON 101. Table below shows the impact of the market trends and factors on our economy.
For those who are curious to know what Chapman University’s forecast was on the housing market in So Cal, they reported a 7.1% increase in values in 2020 and forecasted 5.1% increase in 2021 with interest rates stay where they are now with minor changes, if any.
Don’t forget to take advantage of our “Find a Realtor” page on moreandmorenetwork.com to connect with an expert in your area.
When Active Inventory listings slows down (Advantage: Sellers) while New Listing on the market goes up (Advantage: Buyers), it’s an indication of an active market, in which realtors are writing offers and move the properties towards the finish line. The two trends in opposite direction would nullify each other’s effect on the market, if their rise and fall were at the same level.
Coming Soon properties increased by over 13%. Advantage: buyers.
Closed listings had a slight increase. Good for everyone.
Don’t forget to take advantage of our Find a Realtor page on moreandmorenetwork.com to connect with an expert in your area.
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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.