March 10, 2021
By Saeed Ghaffari
So Cal Market Beat
MLS Data provided courtesy of Real Estate Legends, USA
Table below shows the impact of the market trends and factors on our economy, ECON 101.
Buyer, Seller & Investor Tips
- Buyers: The trend is in your favor. Every county shows an increase in new listings and coming soon properties. The average for the So Cal area is in double digits, 12.83% for new listings and 19.36% for coming soon. The active listings are also up in the region, but it was mixed among the counties. Closings were down by a tad less than .5%. If the trend continues, it should put pressure on sellers, if not to bring the price down, but certainly to more flexible with their terms.
- Sellers: Rates are on the rise, affecting buyers’ purchase power adversely, inventory is increasing, providing a bigger pool of options for buyers, and the prospect of more distressed sale on the market caused by the COVID-19 impact on the economy, all may tip the scale towards a buyer’s market, if not immediately, but rather soon. Do not turn down a reasonable offer with solid financing and proof of down payment.
- Long Term: The rates are rising. Lower your expectations on the ROI and keep adding to your portfolio.
- Short to Mid Term: There are good deals out there and most likely more to come. Get your finances ready and work with experienced agents.
- Everyone: Money is important, but it’s not everything. While you protect your financial interest, be sure to build good will with people you do business with.
Buyers, Sellers & Investors: Seek the advice of an experienced local realtor for data specific to your market. Work with realtors with skills and character you can count on.
Active Inventory listings changed direction and went up by .92%, the week before, it was reported at .18% drop. The more properties on the market, the more advantage towards buyers.
Compared to the week before, more new listings are in the market, 12.83% and older listings dropped by 8.43%, signs of a very active market, good for the economy.
When the change in Activity Index is higher than the change in Active Inventory, it’s an indication that more properties are coming to than leaving the market. Aging Index went down by about 2%, meaning properties are moving at a faster pace.
Coming Soon inventory was turned around and shot up by 19. 36%. With a higher number of active listings, higher number of new listings and a double digit increase in listings coming soon to the market, all are pointing to advantages to buyers. Sellers get ready to ease up on your terms and maybe price too.
From last week’s increase of 22.9% to this week’s drop of .49% in Closings, with all the other trends showing advantage to buyers, and the increase on interest rates, it may be the beginning of a shift in the market..
For data specific to your local market, we have expert real estate professionals listed on M&M Expert Panel under the real estate column. Additional real estate services maybe found in M&M Business Directory. For free real estate and mortgage consulting, write to [email protected].
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