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MARKET UPDATE: Inventory Crisis?

Thursday, December 3, 2020   /   by Traci Pimentel

MARKET UPDATE: Inventory Crisis?

Market Update
We've seen greater than a 50% drop in inventory since mid-October.
With so few homes on the market, buyers have been grasping at straws.
Interest rates are still hovering at an all time low. With an upcoming shift in Presidency and so much uncertainty with Covid-19 cases surging, home buyers want to take advantage of the low rates while they last.
Fewer new sellers coming to the market while a greater than usual number of buyers continue to search for a home causes inventory to continue to evaporate. Historically, six months of supply is considered a normal real estate market.
Going into the pandemic, inventory was already well below this mark.
As the year progressed, the supply has reduced even further.
Compared to this time last year, the National Association of Home Builders report shows that buyers are having more success finding homes in their price range. However, it also notes the percentage of buyers saying they're getting outbid when they make an offer has jumped from 15% to 27%. Buyers are indicating that bidding wars are a major obstacle to finding their dream home.
The CoreLogic HPI Forecast indicated that home prices increased on a month-over-month basis by 0.4% from October 2020 to November 2020. They predict a 1.9% year-over-year increase from October 2020 to October 2021.
Home prices nationwide, including distressed sales, increased year-over-year by 7.3% in October 2020 compared with October 2019.
It's never been a better time to list your house.
KEY: SFH = Single Family Home FRM = Fixed Rate Mortgage
SFR = Single Family Residential
All data comes from the CRMLS, InfoSparks, Michael Lewis Marketing Suite, Altos R.E., Keeping Current Matters, Corelogic, Showing Time, Realtor.com, Freddie Mac, Fannie Mae, Mortgagecalculator.com, Wall Street Journal, First American Title Co., NAR (National Association of Realtors) & CAR (California Association of Realtors).
Current as of 12/1/2020.
The Hardest Working Team
On The Central Coast
Dick Keenan
DRE# 00860187
Narlene Carter Keenan
DRE# 00976857
Kyra Dykes
DRE# 02040105
Melissa Crooks
DRE# 02000537
Moey Nichols
Bruce Carson
DRE# 02079988
Chris Cucchiara
DRE# 02023880
DRE# 02005015
Each Office is Independently Owned and Operated.

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The Keenan Carter Group
Richard Keenan And Narlene Carter Keenan
350 James Way, Ste 130
Pismo Beach, CA 93449
Keller Williams Realty Central Coast DRE# 02005015
The Keenan Carter Group DRE# 00860187
Each Office is Independently Owned and Operated.

Based on information from California Regional Multiple Listing Service, Inc. as of April 24, 2024. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
Information is provided exclusively for consumers’ personal use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS.
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