So Cal Housing Market Pt. 1
Some things you should know about the housing market right now
I have been tracking the movement and changes in real estate in the last 2 weeks during the shut down period.
I will continue to do so in the coming weeks to keep you informed.
If you have been following closely, you know that supply of homes was low before all of this happened
( Check out how we were doing in January click HERE bit.ly/3bW80v8 )
So let’s talk about housing supply
No Surprise we still have very low supply!
Active inventory at 29,148 – up 1% in just 2 weeks
People are holding off putting their home on the market
Last year at 41,479 , a 42% difference from 1 year ago.
Covid 19 is suppressing demand of homes for now as everyone is holding their breath during this shut down.
Now I know what you’re thinking, is the real estate market is going to crash?
Not so fast….
Experts I’ve talked to who are way smarter it’s just a pause in activity and we will have to see how the economy adjusts when this is over.
We had a very imbalanced market at the beginning of the year due to low interest rates and low inventory.
In plan English – Not enough inventory and too much demand.
We now have a much more even market due to buyers taking a break from buying.
Here are numbers for the math lovers…
Housing demand drops 11,135, down 8% in 2 weeks
Last year 16,388 (47% difference)
Normal change is 6%
The amount of pending sales (9800 down 12%) tells us we still have a lot of buyers in the market place who are buying.
Stay tuned! I will send you part 2 of this report tomorrow.
We will talk about the luxury market and who it will affect during this shut down
Again here’s the January Market Report for your reference – bit.ly/3bW80v8