It’s the end of October, and the beginning of November, the last 2 remaining months of 2016 to go, and 682 residential homes are listed Active for sale, a stable number, in Long Beach and Lakewood, California (including single family residences, condos and townhomes). Last month at this time it was 693 Actives.
In the month of October 2016, 393 homes sold/closed escrow, up from 366 homes sold/closed escrow in the previous month of September.
We now have a 1.7 month supply of inventory.
That means on average it taking 45-60 days in this market to get a home sold. The average days on market in our area is staying consistently between 45 and 60 days.
Let’s see how it breaks down in some different price points:
Of the 682 residential homes listed for sale right now:
- 137 are priced at $800,000+ (151 last month – same).
- 35 homes sold in the month of October at $800,000+ (32 last month)
- That’s a 3.9 month supply.
- 270 are priced $600,000+ (282 last month, 289 the previous month)
- 113 homes sold in the month of October at $600,000+ (106 last month, 95 the month before)
- That’s a 2.3 month supply.
- 334 are priced between $300,000 and $600,000 (345 last month, 354 the month before)
- 229 homes priced $300,000 to $600,000 sold in the month of October (210 last month and 238 the month before)
- That’s a 1.5 month supply of homes in this price range.
- 82 are priced $300,000 and less (67 last month and 83 the month before)
- 58 homes priced under $300,000 sold in the month of October (51 last month)
- That’s a 1.4 month supply
What we are seeing here:
This is a classic scenario we see at this time of the year – while inventory was building at the end of August and beginning of September, due to Sellers putting their homes on the market late in the summer and buyers gradually leaving the market as school starts, now in October, we see a reversal, which shows Buyers coming back into the market, since kids have settled into school and now Sellers are leaving the market, and not joining the market, waiting instead till “after the first of the year.”
Most Sellers I am speaking to want to wait till after the “first of the year” to put their home on the market, or wait till Spring, when the majority of other Sellers are putting their homes on the market. What they don’t understand is that in Spring, there will be a flood of Sellers entering the market together, increasing supply. What happens with increasing supply and fixed demand is that prices go down. So contrary to popular belief, listing your home for sale at the end of the year gets you higher selling prices. This is due to the reduced inventory and steady Buyer demand.
Why is there strong Buyer demand at the end of the year, you ask? Buyers are still looking. There are many Buyers in our market who are serious and looking to move, even over the holidays. The reasons are this: the natural slowdowns at their work create an opportunity for taking a week or two off at this time of year to move or have work done to their new home. We also have very good weather and no snow or sleet or hail to inhibit a good move. And with fewer homes on the market, your property has less competition and a healthy Buyer market that tends to be more serious about getting into their new property.
The data also suggest something for Move-up Buyers. If you own a small house or condo and you are looking to move up to a property at a higher price point, the market is showing the following – softness at the higher end (over $800,000) where we see a 4 month supply of homes, and strong demand under $800,000 where we see anywhere from a 1.4 to 2.3 month supply of homes, about half. So for example, if you list your $450,000 home for sale, you are likely to get strong offers, and when you go buy your $800,000 property, you may be able to get a steal, negotiating with the seller one on one.
The last 2 months of 2016 are here. Let’s dust off those new year’s goals we made back in January and see if on that list, a move to a new home was something we wanted to achieve for ourselves and our families. If that’s on your list, we still have 60 days to accomplish it. Let’s get rocking! And call me for a great moving experience.