Weekly Market Update - 5.10.20

Nobody knows the future and yet, there are certain indicators that can give us insight into the impact the current conditions and what strategies you should adopt now to prepare your business. Here are some insights to help you understand where the market is currently.

Showings have been on a steady rebound since March 28th and stagnated and experienced a slight dip this past weekend - likely due to the holiday weekend. Barring that, based on the current trend, we can anticipate that showings will likely continue to increase as buyers regain confidence, so long as rates stay low.

While showings have continued to steadily pick back up, in the past 7 weeks, closed sales per week are still down approximately 41.6%, with the per week average dropping slightly this past week from 545. New inventory is down about 37.9% in Los Angeles county in comparison to the 8 week period Pre-Covid19 (1/27-3/22).

This is likely why prices have stayed competitive, even tightening up further in the past week, despite the significant decrease in qualified buyers due to affordability issues. Buyers currently in the market are strong candidates with above average credit and increased stability in their jobs and we are still seeing multiple offer scenarios. 

Brokermetrics Data

While many real estate agents are wondering whether shortsales and NOD sales will increase, we likely won’t see that inventory hit the market until late 2020 / early 2021, depending on new regulations currently being proposed. The current markets to keep focused on, aside from database, include Absentee Owners, Short-term Rental Inventory, and Office/Retail.