So Cal Real Estate Marketbeat

So Cal Real Estate Marketbeat

November 25, 2020

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By Saeed Ghaffari

The active inventory has dropped again in every county. New listings are lowered in  most of the counties and closings are up across the southland.  What does it all mean? Not being an economist doesn’t help, but having data on a longer time period may give a better picture on the market for us non-economists.  Moving forward, we’ll present you with charts on 5 week of data on much of the information on the above table. Let’s start with the Active Listings.

 

The active inventory has dropped steadily in So Cal. This is due to the number of properties entering the market not keeping up with the pace of properties going to escrow and canceling or expiring leaving the market, resulting to a hot seller market across So Cal.

The properties with the coming soon status have had a steady drop, but not by much. As little as it is, the drop on this category is certainly an indication of less properties entering to the market.

New listings with 7 days on the market or have also lowered steadily. This is may be attributed to less properties entering the market and the current inventory selling faster, also an indication of a hot seller market.

The number of properties with 100+ days on the market is going up. This data consists of properties in every market on the So Cal in different price ranges.  The 100+ days on the market for higher end properties is certainly normal, but for properties in the $700k and lower range does not  make sense in this market. Either the properties have limitations on showing and marketing or priced out of what their true worth is. Either case, these sellers, as pressure builds on, may start showing flexibility in their asking price.

The good news is that the closings are up. Is it really a good news! Definitely for those involved in the transaction. But with lower total active inventory, new listings, and coming soon properties, the higher closings are an indication of less work and the service providers catching up with their back logged pipelines.

With all that in consideration and the pandemic, winter, and post-election era, as an optimist and a non-economist, I would count my blessings with the way market is. Especially considering the historically low interest rates.

 

For all your mortgage/real estate needs and lender/realtor referral connect with me, @saeed_ghaffari on moreandmorenetwork.com

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