Local Market Report – February 2020
When we look at the numbers for last month (see chart below), the most striking thing is the months’ supply of available listings and the decline compared to the same month last year. It seems that home-sellers took a holiday break which they haven’t returned from yet, but the buyers did not slow down.
Nationally, we’re experiencing the largest housing-inventory shortage in U.S. history. Several factors contribute to this. One is that an increasing number of Baby Boomers have selected to age in place. Another factor is the lack in new home construction, especially in entry-level markets.
One positive is that mortgage rates are low and are expected to remain below 4% well into next year.
What does this mean for sellers?
As long as your home is priced correctly and presented and marketed well, you’ll likely have multiple offers and will have a big advantage in negotiations. However, I cannot emphasize enough the need to hire the right agent. I see too many homes sitting on the market too long and it generally boils down to the homeowner having chosen “the cheapest” agent, who hasn’t been able to perform.
What does this mean for buyers?
The low mortgage rates make purchasing a home more affordable. Make sure you get pre-approved before beginning your home search so that you’ll be armed and ready when you find the house you love. Also, make sure to use an experienced buyer’s agent. I find some buyers who believe that using the listing agent will give them leverage, which isn’t true because that agent represents the seller first and foremost. You need your own negotiator and guide.
Local Data, City by City
A balanced market is a 6-month supply of homes. A seller’s market is anything less than that, while a buyer’s market is any that has more that a 6-month supply.
|CITY||Feb 2019 Average Sales Price||Feb 2020 Average Sales Price||Year over Year Appreciation||February Ave. Days on Market||Total # of Sales – February||Total # of Sales – YTD||Active Listings||Months of Supply||Previous Yr Supply Change|
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As always, find me at 626-290-1250 or MaryAnglin.Realtor@gmail.com