“Are we there yet?”
Anyone who’s been on a road trip either as a kid or those with kids will know this saying very well. In a lot of ways this sort of sums up 2020. The pandemic, election, second round of the pandemic, and so on. To give you some words of encouragement, “We are almost there.”
As for the pandemic, news of a vaccine is good news, and it provides a much needed light at the end of the tunnel. While there may be some bad news in the short term, I am optimistic that we will be in a much better place 12 months from now. As for the election, we finally have a president in place for 2021 (at least theoretically), but despite all the turmoil, I’m not sure it actually matters all that much. It was great to see the record voter turnout, but it seems like every time we have a new president, one group thinks the world is coming to an end (remember all the people that swore they would move to Canada if Trump was president – I think most of them are still here), and the other thinks all our problems will disappear. No matter what side you’re on, history has proven that Americans are a resilient bunch, and whether we agree with who the head honcho is or not, things seem to turn out fine in the end. So hang in there, this too shall pass and before we know it, another 4 years will have sped by.
Meanwhile, in real estate, the market continues it’s amazing rebound from a near silent spring. In a world with limited travel, shopping, and entertainment, the focus has turned to one’s personal space, and your home is at the center of that focus. Locally, from El Segundo to Palos Verdes, pending and closed sales are up nearly 50% from a year ago, while new inventory is down over 50%. This supply and demand imbalance has resulted in stiff competition for the best homes, and as a result, prices have risen an average of nearly 10% in the 3rd Quarter. Of course, if you are a seller this is great news; but don’t let this good news overly inflate what you think your home is worth. In the past week, over 40% of closed sales still sold below the asking price – so your pricing strategy still matters. Wouldn’t it be better to price your home so you can pick your buyer, as opposed to the other way around? For buyers, I have good news. Interest rates are expected to remain low for some time (below 3% in some cases!), so take advantage of the low rates while you can, because at record lows, there’s only one place for rates to go – UP!
I know many of you reading this have found that slice of paradise you call home, but If you are considering selling your property anytime soon, the combination of all-time low mortgage rates and almost no competition, makes this the best time to be a seller in the past 14 years!
7 Day South Bay Market Activity Report
New Listings: 81
New Escrows: 111
Closed Sales: 126
Ave Price/Foot: $691/foot (SFR and Townhomes)
Average Price: $1.54m (SFR and Townhomes)
Average Days on Market: 29
What I am reading this week
What Does the Housing Market’s Historic Pandemic Rebound Mean for 2021? After a radical swing in home sales from April to September, what can we expect in 2021? Economist Mark Fleming addresses what is driving the market and what potential headwinds could manifest in 2020. “The trend in housing market potential will likely depend on the labor market’s recovery and how lenders adjust credit standards.”
If you have any questions about the market or the value of your home, just reach out and ask – I am happy to help out. In the meantime, stay cool, stay safe, and be well.