February 2021 Local Market Update
Throughout Southern California, we’ve seen a surge in the housing market regarding both home prices and home sales. Several factors are affecting the influx of buyers including record-low interest rates. The pandemic and its resultant work-from-home situation is also a factor, as many former commuters are now working from home and looking for larger homes, commonly farther out from the city.
We did experience a bit of a sales slump last spring and summer due to the uncertainty of the pandemic and the subsequent stay-at-home orders. Realtors were forced to adapt their methods of doing business by utilizing technologies such as virtual showings and electronic-signing on a much larger scale. This assisted in keeping movement in the housing industry.
While we remain in a very strong seller’s market due to limited inventory, mortgage applications are up as buyers are wanting to take advantage of the low-interest rates. Home prices are not expected to drop any time soon, though the expectation of more homes hitting the market may slow down the pace of appreciation.
· What does this mean for sellers? If you’ve been wondering whether it’s a good time to sell, it’s an excellent time to get a premium price for your home. However, if you’ll be purchasing a new home locally, speak to a reputable agent to find out how to navigate the low inventory situation in this competitive market.
· What does this mean for buyers? You need to have everything ready before you start, so talk to an agent about how to get ready. Also, keep in mind that you will likely need to be able and willing to pay more than your dream home is listed for to stay in the competition. Select an agent with strong negotiating and communication skills.
The data in the chart below specific to a handful of our local cities underscores the drastic year-over-year appreciation rate in many of them, as well as the limited inventory. The number of year-to-date home sales is higher in each of them than at the same time last year.
|CITY||February 2020 Median Sales Price||February 2021Median Sales Price||Year over Year Appreciation||Feb. Ave. Days on Market||Total Homes Sold February||Total Homes Sold Y-T-D||Current Active Listings||Months of Supply|
For those of you who may have friends or relatives outside our area who need a Realtor, I’m happy to do some behind-the-scenes screening and recommend a good agent or two to them. No cost to you or your friends, of course. Learn more here.
As always, find me at 626-290-1250 or MaryAnglin.Realtor@gmail.com