Market Overview – Calling All Listing Agents
2020 residential closings remain 13.2% behind 2019 as a result of the pandemic but the market has already begun rebounding! Meanwhile, SFR inventory dropped dramatically to 2.3 months overall based on the market shift of supply and demand and the lack of new listings taken. There were 4,188 residential listings taken in June which is nearly the same as in May (4,124). However, residential closings were up 41.4% month over month! So there’s really only about 1 month of marketable inventory because 53% of all SFR homes are listed well above what the market will bear! It’s time to send out an APB to find more listing agents to help replenish and build up the supply of available homes for sale!
The level of over pricing The SFR Over Pricing Index dipped to 53% while the average days from list to close remained steady at 39 days in May. So what happened? Again, the older, seasoned, overpriced properties continued to sit without much activity, showings, or offers. Nearly a quarter of all listings have been on the market more than 120 days without an offer. Meanwhile, the newer inventory appears to have been priced to the market and went under contract almost as quickly as they come on the market. Months of inventory ranges from 1 months to 17 months (not counting The Ridges), depending upon the community. Localism and even hyper-localism is everything right now.
There were 4,188 residential listings taken in June – nearly flat from May. The 7,276 available listings at this time is 993 homes less than last month, while the 5,275 Pended listings reflect another 23% increase in open escrows. However, the 2,935 residential closings in June is a resounding 41% increase from previous months closings. So when can we conduct Open Houses again?? Looking for listing agents to bring on more virtual tours!
The median closed sales price of an SFR jumped from $315,000 to $325,000. Similarly, the average closed sales price of an SFR went from $337,974 to $377,937. June simply overcame the market challenges from April and May to stabilize and find some momentum going forward into the summer and fall months. Yet, what remains noticeable is the continued contraction of closed units at price points under $250,000.
Have a Safe and Sane 4th of July 2020!