February 17, 2021
By Saeed Ghaffari
Saeed is the founder of Money, Real Estate & More. With over 30 years of experience as a lender, investor and a real estate professional, he provides free consulting in these fields. To connect with Saeed, sign up for free / log in on moreandmorenetwork.com and send him a private message.
MLS Data provided courtesy of Real Estate Legends, USA
Buyer, Seller & Investor Tips
- Buyers: All trends are in favor of sellers. Active inventory is down from last week and so is the new listing inventory, however, very insignificantly. Interest rates are also low and it brings more demand to the market, however it provides a higher purchase power to buyers. Older listings (100+ DOM) are also dropping, lowering the inventory. Low inventory, high demand, means a strong seller market.
- Sellers: It’s never time to sell unless you have to. But if you have to sell, times could never be better. It’s a frenzy out there. Rates are low, demand is high, we are moving away from the winter, and the COVID related unknowns could disrupt the trend anytime. If you have to sell, don’t hesitate now.
- Long Term: Go for it. Take advantage of the lower rates.
- Short to Mid Term: There are good deals out there and most likely more to come. Do your homework and roll the dice. You won’t get anywhere unless you are willing to take chances and get out of your comfort zone.
- 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.
So Cal MLS Weekly Activity Report
- Active Listings had a drop of .73% in So Cal, slight improvement from the week before with .89% drop, highest drop was reported in Riverside county again, with 4.36% and the lowest was a gain of 1.48% in in Ventura Co.
- The new listings, listings with 7 days or less on the market went down by just .14%, comparing to last week improvement of 13.49%, it’s net difference of 13.63% in the wrong direction.
- Older listings inventory, listings with 100+ days on the market went down in every single county again. Good news in this category. The average for the region was 2.73%.
- As mentioned last week, I have been monitoring the ratio of new listings to the total active inventory and the ratio of older listings to the active inventory, calling them Activity Index and Aged Listing Index respectively. When the Active Inventory curve stays flat or goes down, you want to see the Activity Index going up and the Aged Listing index going down. This past week, both stayed flat.
- Coming Soon listings, listings about to hit the market in 10 days or less was down last week by 8.62%, much higher than the .44% drop of the week before. This activity was down in almost every county, except for OC that showed a 2.81% gain, with Ventura leading in the region with 27.91% drop, and second in place was LA with 16.45% drop. Other counties had single digit drops in this Category.
- Finally, the good news, Closings took a turn from last week and the average for So Cal was up by 5.05%. Ventura had the lead with 53.54% increase, next was San Diego with 20.61% increase. Riverside was the only county showing a loss n Closings, at 2.57% and the rest had small increases in the Closing category.
- The information provided to you is the courtesy of Real Estate Legends, USA and will be posted weekly in an article on moreandmorenetwork.com for your view.
Active Inventory is on a downward trend, keep it the seller market hot.
New listings are down a bit, older listing inventory is falling too. Both advantages go to sellers.
This is a fairly new graph, the ratio of new and aging listings over the total active inventory. It’s a good sign for the market when they move in the opposite direction.
Coming soon listings took a turn from last week and dropped 8.62%. Relatively a sharp drop.
Good news for all, closings were up from last week by 5.05%.
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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.