Real estate market is constantly fluctuating between a buyer’s market, a neutral market, or a seller’s market. It is a movement. It does not switch from a seller’s market into a buyer’s market overnight. Since it’s a movement, there will be patterns that allows to speculate or even predict the direction of the market.
Signs that the market is shifting towards a Sellers Market….
- Number of Listings on the Market: Decreasing
- Number of Pending Sales / Under Contract: Increasing
- Times it take to get a home Sold: Decreasing: Decreasing
- Number of Offers Received: Multiple Offer
- Home Value: Increasing
What about buyers market? Here are the trends….
- Number of Listings on the Market: Increasing
- Number of Pending Sales / Under Contract: Decreasing
- Times it take to get a home Sold: Decreasing: Increasing
- Number of Offers Received: Few
- Home Value: Decreasing
Now that we know what kind of trends we will see in different type of market. Let’s look at the data/trends for Los Angeles and Orange County Housing Data to see what really is going on.
Number of Listings on the Market
Number of Pending Sales
Times it take to sell
With the numbers of overall of overall buyers buying decreasing and number listings increasing. It is not hard to see why the listings will be taking longer to sell.
What does it mean?
From all three chart you can clearly see that the market is shifting towards a Buyers Market. We will and have been seeing home prices trending downward as well.
For Sellers:
With all the uncertainties out there, wars, election, economic outlook, commission rule change, and representation rule changes, buyers are more cautious than ever. Homes that are well priced and in good condition are still moving well. However, but properties that requires upgrades or even 5% off on the price are sitting. The good news is that, the buyers that are currently in the market are SERIOUS and willing to pay a slight premium when they find the right property.
For Buyers:
It could be one of the best time to make a purchase in the last few years. There are more inventory for you to choose from and less competition on offers. It makes it easier to find that property you have been looking for. Real Estate is seasonal, we will start to see number of listing decreasing in November and your competition always starts to heat up in the new year.
