February 24, 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.
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 only data that provides advantage to the buyers is the coming soon listings. This category was up by 11.49% while the week before, it had 8.62% drop, a net gain of 20.12% in 2 weeks. If this trend continues, there will be additional inventory in the market, providing buyers more options to choose from and possibly some bargaining position.
- Sellers: All trends and factors support a strong seller market. Old listings are moving, the new listing inventory is pretty much staying flat, however the coming soon listing is up and will provide more options for buyers to choose from. The interest rates, although still considered very attractive, have shown an uptick in the past few days and could slow the market down if they continue their trend.
- 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. 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.
So Cal MLS Weekly Activity Report
- Active Listings are down in the region by an average of 2.04%. Every county shows a loss with San Bernardino in lead with 4.89% drop and Ventura with a gain of .42%.
- The New Listings (listings with 7 – DOM) inventory was down by 1.53% in the region. Orange and Riverside counties both had a gain of 2.57% and 2.08% respectively, San Bernardino had lead in this category with the 8.75% drop in new listings.
- Older Listings, listings with 100+ DOM, was down by 3.25% in So Cal. Except for Ventura county, other 5 counties moved their older listings. Riverside county had the highest drop in this category with 5.88%.
- Good news for the buyers, Coming Soon listings were up by 11.49% in So Cal. These are listings that are expected to hit the market in 10 days or less. 3 counties had double digit increases, Ventura with 45.16%, San Bernardino with 38.10% and Los Angeles with 15.75%.
- Finally, the closings were mixed in the counties in So Cal. OC had a 33.70% increase, Riverside had 14.76% increase, Ventura had 19.08% drop in closings and the other 3 counties, LA, San Bernardino and San Diego had single digit drops. What a contrast between the highs and the lows! Overall average was 2.66% increase in closings for the region.
Active Inventory listings dropped by 2.04%, last week it showed .73%, the trend is obviously in favor of sellers. Advantage: Sellers
New Listings had a downward trend, it dropped by 1.53%, considering the week before they only had 0.14% drop, it should give an edge to the sellers. The old listings had a much sharper drop in their count, 11.49%, the combination of the two gives definitely a bigger advantage to sellers.
The Activity Index and Aging Index are relatively flat, with very insignificant change in either, a sign of stable So Cal market.
Coming Soon inventory is up by 11.49% from the week before, seems to be the major advantage towards buyers.
Closings went up by 2.66%, the week before they shot up by 5.82%. The more closings, the better for the economy and all parties, sellers, buyers, realtors and all the service providers.
When the New Listings and Activity Index graphs are moving in the same direction with the same slope, it’s an indication of a really good market
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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.