November 25, 2020
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.
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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.