Hope your August is starting off well. Already the first week is over, and my July stats are late to you as I’ve just had the time now to stop running and share with you all the great news.
My executive summary for you is this:
(1) Inventory is LOW, supply of homes for sale is LOW – this is driving up prices, so sellers are getting top dollar for their homes and investment properties. If you are considering selling, there is no better time for you to get the most money on your property.
(2) Interest rates are lower than they have EVER been – the LOWEST in the last 50 years. If you are renting, now is the time to lock in the lowest interest rates and you can lock them for 30 years. Don’t put up with a rent increase ever again.
That said, without further delay, here is what happened in the hot month of July in Long Beach:
July 2020 real estate stats for our area, Long Beach, California, in a nutshell:
Number of residential properties on the market (active listings): At the end of July and beginning of August, we have 443 active listings, essentially the same number of active listings that we had a month ago. Very low levels, well below average levels of 500 to 600 actives.
Number of residential properties that went under contract in July 2020: 327, up from 301 in June and 244 in May, a low of 146 in April, 196 in March, 251 in February 2020 – significantly more homes went under contract in July compared to the previous months. We have rebounded above and beyond pre-Covid levels.
So what we observed in July was the buyer pool is increasing, buyers having the ability to make higher offers given the low, low interest rates, and sellers accepting these offers and going under contract. Meanwhile, inventory levels are not increasing. Supply is constricted. Demand is increasing. An average of 10.5 homes a day went under contract in July 2020, vs 10 homes a day in June, and 8 homes a day in May and only 5 homes a day in April.
This observation can be seen throughout Los Angeles county, the state of California, and the rest of the U.S., not just in Long Beach.
Number of residential properties that closed in July 2020: 312 homes closed and sold in July, vs 247 homes in June, vs 163 that closed in May, 219 homes closed in April and 229 in March and 228 in February. Closings were higher in July vs previous months this year. That’s a whopping 26% increase in closings from June to July this year!
Average price of property sold in Long Beach in July 2020: $716,566 in July, up from $667,234 in June, and up from last July which had an average sales price of $665,679. That represents an approximate $50,000 jump in average prices between June and July of this year, and from July last year to July this year, or 7% month over month and 8% increase year on year.
Overall, the real estate market in July surged – up significantly in volume and sales price, as more buyers returned to the market, taking advantage of further plunging interest rates that took a nose dive after the 4th of July. New pending sales in July of 2020 increased 9% from June 2020, which had already increased 23% from the previous month. Closings also increased significantly. Sales of residential property is robust and appears to be a result of historically low interest rates, strong buyer interest, and pent up demand from a weaker than average spring. Sellers cashing out are enjoying higher prices.
What will August bring? Stay tuned. The first week of August so far is looking to continue the intensely heated trend of July.
Oh, and if you like the look of the photo above, and you’d like to explore living by the ocean, on the beach, I’ve got a great property for you – right where the pin is locating there – Mediterranean style building, end unit, 2 bedroom 2 bath with 2 balconies and 2 parking spaces. Send me an email or give me a call if you’d like more information, and would like to see it!