INVENTORY DOWN, BUT PRICES MAINTAIN THEIR STANCE!
Here’s a quick breakdown of the local, current real estate market. The number of CLOSED SALES is down by 29.7%from a year ago. The number of ACTIVE LISINGS is down 39% from a year ago. Do you want know what is up though? HOME VALUES! The AVERAGE SALES PRICE in South East Los Angeles and North Orange Counties for the month of April 2020 is up by 9.1% from 1 year ago. Can you believe that?
Here’s why: Inventory is low which in turn is keeping the demand high for buyers. Simply put, there’s just not enough homes on the market to meet buyer demand. This is what is keeping home values right where they’ve been for the past couple of months. We were already seeing low housing inventory in December 2019 and January 2020, but now low inventory went “Next Level” on us. To see that we are down 39% on ACTIVE LISTINGS as noted above from a year ago a significant drop to say the least. The graph here shows ACTIVE listings on the market for every month going back 5 years. You’ll notice that we are now at the lowest point in the past 5 years. Of course, one of the main reasons for this drop in inventory is because of COVID-19 and its economic effects.
It’s possible that fear came over many that were considering making a move and although the economy was very strong before this, homeowners possibly decided to put the breaks on making a move in the middle of the Pandemic and stay at home orders.
In all of this, another thing that is very interesting is that the average sales price has not taken a hit. Home values continue increasing at the same levels, and believe it or not, a little more in some cases compared to select years. The graph below shows a trend continuing upward. We can’t leave out the fact that interest rates are still extremely low allowing for buyers to continue to pay the prices that sellers are wanting for their homes. Lower interest rates keep the buyers monthly debt ratios low ultimately allowing them qualify for higher sales prices while still keeping buyers payments low.
INVENTORY DOWN, BUT PRICES MAINTAIN THEIR STANCE!
Here’s a quick breakdown of the local, current real estate market. The number of CLOSED SALES is down by 29.7%from a year ago. The number of ACTIVE LISINGS is down 39% from a year ago. Do you want know what is up though? HOME VALUES! The AVERAGE SALES PRICE in South East Los Angeles and North Orange Counties for the month of April 2020 is up by 9.1% from 1 year ago. Can you believe that?
Here’s why: Inventory is low which in turn is keeping the demand high for buyers. Simply put, there’s just not enough homes on the market to meet buyer demand. This is what is keeping home values right where they’ve been for the past couple of months. We were already seeing low housing inventory in December 2019 and January 2020, but now low inventory went “Next Level” on us. To see that we are down 39% on ACTIVE LISTINGS as noted above from a year ago a significant drop to say the least. The graph here shows ACTIVE listings on the market for every month going back 5 years. You’ll notice that we are now at the lowest point in the past 5 years. Of course, one of the main reasons for this drop in inventory is because of COVID-19 and its economic effects.
It’s possible that fear came over many that were considering making a move and although the economy was very strong before this, homeowners possibly decided to put the breaks on making a move in the middle of the Pandemic and stay at home orders.
In all of this, another thing that is very interesting is that the average sales price has not taken a hit. Home values continue increasing at the same levels, and believe it or not, a little more in some cases compared to select years. The graph below shows a trend continuing upward. We can’t leave out the fact that interest rates are still extremely low allowing for buyers to continue to pay the prices that sellers are wanting for their homes. Lower interest rates keep the buyers monthly debt ratios low ultimately allowing them qualify for higher sales prices while still keeping buyers payments low.
