Real Estate Market StatsUncategorized August 16, 2022

Mid-August | The Best Beach Homes Market Update Report

August is well under way – with the warmth and heat we have come to expect here in Southern California! Normally, during the summer months we see a slowdown in the housing market, and now that we are in the more normal real estate market, as opposed to the pandemic real estate market that we have experienced the last 2 years, that is precisely what we are seeing. We have a summer slowdown in activity, with people taking summer vacations, and fewer people shopping for homes than in the springtime.

Here is your Real Estate Market Update for August 2022 with a general overview of what is happening across North America, and then a particular focus on our local market, Long Beach, California. I’ll also be sharing some market stats from last month, July.

Opening Thoughts

While the market continues to cool and normalize and come out of the pandemic home buying frenzy, the most important recent development in the last few weeks, which began in July 2022 and now has progressed into August is that the mortgage interest rates in the U.S. have declined.

 

That is very exciting and important news because it was the dramatic rise in mortgage interest rates that began this year that was a primary cause of the slowdown in home purchasing. Now that interest rates have come off their highs, buyers began coming back into the market and began looking for and purchasing homes again.

 

Now, to be clear, the number of buyers in the market is not as high as it was earlier in the year, especially between January and April, when rates were lower. We are seeing the return of some multiple offers on well priced attractive homes in our area, with bidding wars coming back especially on some attractive price points where there is still a good sized pool of buyers, and especially to those homes that have a lot to offer – move in ready condition, great schools, being some features generating particular strong demand.

 

Charts and numbers for city of Long Beach, California

 

Let’s look at some numbers to demonstrate what we are seeing.

Number of Active Listings: Up again – in July 2022 there were 509 active listings, vs 441 in June. Compare that to the beginning of the year when inventory in Long Beach dipped below 300.

Active listings going up due to reduced demand….. inventory levels are coming back but have not quite reached pre-pandemic levels. Now buyers have more choices, and can take more time to make a decision. However, there are still limited homes for sale on the market.

 

Pending Sales: Down in July compared to the previous month – 163 sales compared to 240 in June. Also, a whopping 47% down from the previous year July 2021.

As mentioned previously, we appear to be out of the pandemic real estate market, when home buying and moving was a large focus for a large part of the population – purchasing bigger homes or moving out of areas, which was happening int 2020 and 2021. Many of those people have already moved, so as things go back to normal, so does the real estate market activity.

Median Sales Price: Median sales price is down in July 2022 vs June 2022. Was at $846,000 vs $928,000 in the previous month. However, median sales price is still up 7% vs last year.

Prices still trending higher year after year, but price increases slowing.

 

Conclusions

Active listings are up, pending sales are down, and prices are slightly down, though still higher year upon year…. The real estate market continues its trend away from a hot market toward a normal balanced market.

Homes are still being sold, albeit at a slower rate. Now more than ever, the following apply:

If you are a Seller:

Your home needs to be the most attractive and the best priced in your area, so buyers feel your home as the one they want to see, and ultimately make an offer on. So make it look great, make it accessible to show, make it priced right! We are going to find the right buyer for your home!

If you are a Buyer:

Bravo and congratulations, this is an excellent time for you! Why? Increasing inventory means more choices in the market for you, and more time for you to make a great decision. Also, more time for you to make this move especially if you need to sell as well. In the frenzied market of the previous 2 years, there wasn’t really enough time for you to sell and buy, often – the market was too competitive and you might not have felt great putting your home on the market and taking your chances not being able to find a home you like, or finding it and having to compete with 20 other offers. Not so now – you have more choices, and more time to make that move. And also, rates are improved compared to a month ago.

If you have a specific situation, and thinking about buying or selling, please call me or email me and my team for a complimentary consultation! We serve all of Southern California, and we have connections to great agents across North America.

Nancy Deprez

(CA DRE #01899929)