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.

REAL TIME MARKET NUMBERS

SAN LUIS OBISPO STATS

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.

BOTTOM LINE:

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.