“A down turn is coming”. Have you heard this? I’ve heard this from experts, non-experts, grandmas and anyone who has a heart beat. But is it true? People drive the market and people are emotional. Many people are waiting for the election to make their next move in real estate. Others are waiting for the new year because they believe that the economy is going to take a down turn due to Covid and other circumstances happening in the market. These factors could be true but there is no crystal ball for the future. Here are some indicators that can help us make residential real decisions in the near future.
Sales are UP. Very up. IF you look at the below graph, it contains for sale, sold and pended. July 2020 was the highest sold and pended number in THREE years. Also, if you look at how close the numbers on the graph are, it helps indicate how “tight” the market is.
The other graph is the months of inventory stat. Remember, low months of inventory indicates a seller’s market, while high months of inventory indicates a buyer’s market. July of 2020 had 1.1 months of inventory. Its hard to tell on the graph, but this may be the lowest months of inventory or EXTREME seller’s market in over 12 years. What does this mean? Not sure, but if you are thinking about selling NOW is a very good time. Whats coming next? Well, if you look at the 12 year graph, inventory will only go up when others sellers start to think, “Maybe I should sell now…” Will you miss the boat to sell? I believe this trend will continue because of one simple fact: people WANT to live here in Southern California.
Based on the above stats, please review the following ideas to help guide your decisions:
Aren’t you always looking for a deal? Well the time could be here to find a great opportunity. Stay in touch with your realtor for good buys. With uncertainty comes moments for you to make wise choices. Let me know and I can keep an eye out for you to let you know if something comes up off market.
Rates are low! They are tantalizing you to buy. If you know you are going to stay in the home for a few years then it is probably worth it to take advantage of these low rates. This is a very tough time to buy BUT its still an option with some sellers being flexible. I just spoke with an agent that has a home listed in the 800k range. She said that the seller may be willing to sell for 700k, 100k under the listed price! You never know unless you ask. Also, you must talk to your realtor on how to be aggressive since it may be hard to get your offer accepted.
Right now is a great time to sell as there just aren’t enough homes on the market. Sure, some say that the market is affecting buyers, but I also know many people who have the cash and are looking to move or buy more investments RIGHT NOW. In addition, buyers still want a “turn key” home.
If you liked these stats please reach out and let me know about it! If you have any questions about the Real Estate market or the process of buying or selling a home please contact me. Contact me today if you are ready to buy or sell a home.