December 2016 is here, and on this day 564 residential homes are listed active for sale, down from 682 a month ago today, showing a 17% decline in inventory in just 30 days! This is what happens at the end of the year, a rapid drop in supply as sellers decide to wait till next year to list their home, while lots of buyers are still trying to buy before the end of the year, and especially this year, since we had a bump up in interest rates after the election, and many buyers are looking to buy before rates go up further.
In the month of November 2016, 342 homes sold/closed escrow in Long Beach and Lakewood, California.
We now have a 1.6 month supply of inventory.
That means on average it taking 45 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 564 residential homes listed for sale right now:
- 115 are priced at $800,000+ (137 last month).
- 41 homes sold in the month of November at $800,000+ (35 last month)
- That’s a 2.8 month supply (down from 3.9 month supply last month)
- Note the decrease in supply and increase in homes sold above $800,000
- 230 are priced $600,000+ (270 last month)
- 108 homes sold in the month of November at $600,000+ (113 last month)
- That’s a 2.1 month supply (down from 2.3 months supply)
- 272 are priced between $300,000 and $600,000 (324 last month – sharp drop)
- 200 homes priced $300,000 to $600,000 sold in the month of November (229 last month)
- That’s a 1.4 month supply of homes in this price range.
- 67 are priced $300,000 and less (82 last month)
- 36 homes priced under $300,000 sold in the month of November (58 last month)
- That’s a 1.8 month supply
What we are seeing here:
- After the election, a bump up in interest rates and the fact that the election was finally over made people on the fence jump into the market and buy before rates go up further.
- Most sellers are waiting till “after the first of the year” to put their property on the market. A few smart sellers are getting a head start and putting their property on the market now while inventory is low and taking advantage of the strong buyer activity, and getting more money for their home.
- I’m busier than ever, as more and more people want to do something in real estate, whether it’s selling or buying, and more and more Real Estate Agents are leaving the market and taking the entire December off. But not me, not yet! So if you want to get something done, go with the old adage – give the job to the busiest person because that’s the person who will get it done. December is starting off to be one of my busiest months ever. If you are ready for action, CALL ME, as I’m on duty till at least December 25. HAPPY HOLIDAYS! SOON!