It's hard to believe the NCAA Basketball Tournament final is tonight and the baseball season has started (Padres 2-1), so I guess that means Spring has sprung!
Our local real estate market is showing signs of a recovery with prices still on the stable side. What follows is a statistical summary of county wide activity but the performance in any micro area or zip code could be different, as could other markets across the country.
Detached Homes: 7,567 homes are on the market vs. 7,542 last month, a difference of only 25 new listings. 1,897 new escrows were opened in March compared to 1,767 in February, a gain of 130. This shows that we have a supply of inventory of 3.99 months. Anything less than 5 months inventory is considered a seller's market but since this is on the high end we'll call it a neutral situation with prices stable. Additionally, 2,206 short sales went "contingent" (offer accepted by seller, awaiting lender approval). Ultimately, some of these will close and others will not but if we add that number to the new escrows opened to see how many homes went off the market we get 4,103 which gives us a turnover time of 1.84 months. Buyers are not yet aggressively bidding prices up and sellers need to price their homes very competitively to attract a motivated buyer.
Attached Homes (Condos): 3,657 condos were on the market at the end of March compared to 3,781 the month prior, a decrease of 124 properties. 921 new condo escrows opened in March vs. 854 the month prior, giving us a 3.97 month inventory supply, which is in the neutral range with prices stable. Another 1,446 condos went contingent last month, giving us a total of 2,267 that came off the market, a number that gives us 1.54 months of inventory. Condo owners also need to price competitively to sell as buyers are not overly aggressive.
Interest rates and prices are still extremely low, giving buyers an awesome opportunity to get the best of both worlds. It is my personal opinion that we are close enough to the bottom that hopefully the downside risk is minimized. I think that if you can capture both the low price and interest rate you'll be happy down the road.
On a positive note, it was reported today that both national and local unemployment rates are improving, and that should help the markets as it continues during the recovery period. Interest rates and unemployment are the two strongest factors in the housing market that drive consumer confidence.
Have a great April and let me know if I can help with anything!
R. Ungar, Associate Broker – Keller Williams Realty
