Hello everyone and happy new year!
I hope your year is off to a strong start. What have you decided you would like to accomplish in 2022?
I’d like to make a new year’s resolution to provide you with monthly, timely market stats for Long Beach, California. So without further delay, let’s go right into summarizing the month of December 2021 and letting you know what we are looking at in the month of January 2022:
December 2021 real estate stats for our area, Long Beach, California, compared to 1 year ago December 2020:
Number of Active Listings: 268 – down 40.6%
Pending Sales: 155 – down 36.2%
Median Sales Price of Homes Sold: $785,000, up 21.7%
Average Sales Price of Homes Sold: $885,550, up 28.8%
Average Price per Square Foot Sold: $618, up 15.1%
Average Days on Market for a Listing: 21 days, down 25%
(1) Prices are high but activity has decreased.
(2) Activity may increase again as weather warms up, but it will depend on prices that likely need to level off before buyers will be ready to re-enter the market.
(3) We are still at painfully low inventory levels, so sellers are in the driver’s seat.
(4) Sellers are still managing to obtain excellent prices for their homes.
Sellers were happy in the year of 2021, when prices went up significantly on their assets. Both median and average home prices went up significantly, over 20% increases compared to the previous year. This was a result of strong buyer demand from low interest rates and other factors, as well as historic low inventory, as can be observed from the numbers, the active listings dropping 40% compared to last year, when last year’s inventory was already well below average levels.
Buyers were less thrilled with the high prices they had to face, but given low interest rates for most of the year last year, they were still buying. But in December, buying slowed, as can be seen with the decrease in pending sales, which has been a trend in the past months since August (pending sales August 2021 were 360, September 330, October 309, November 261, and then December 155).
Though there is normally seasonal decline, the decline was stronger this year than last year, when in Dec 2020, the number of pending sales was 243.
While mortgage rates have increased, they are still attractive, and buyers are still looking. Do you have a property you are looking to sell? If so, now is a good time to take advantage of the mismatch in supply and demand. Send me an email to discuss or give me a call and we’ll talk about a game plan that works best for your unique situation.