If you're a potential buyer or seller sometime in the past year, you've had some experience with Property Entry and Advisory Declaration (PEAD) forms, required for all prospective buyers to sign before entering a listed home on the market.
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| PEAD Data |
To backtrack a little, both the national and California economies have recovered, and COVID figures are on the decrease at this time. Looking back to Feb.-April of 2020, earning data shows that job losses for people earning over $100,000 annually were at 12%; job losses for earners under $100,000 annually were at 88% -- the retail, food industry and other service jobs were the hardest hit, while the other job categories over $100,000 income were not hit nearly as hard. Interest rates are at historic lows and are likely to stay that way for sometime to come. Mortgage applications dipped last Spring, but climbed way up in January 2021, all of which is fueling home sales in 2021. California saw a 22% increase over last year in number of homes sold, over 484,000 in one month (but compare to January of 2005 when over 600,000 sold).
In December, 2020, total California home price rose to $717,930 (+16.8% from last year); fueled also by low inventory (-48%), leading to median of 11 days on market and a list-to-sales-price ratio of 100.1% (+1.9%).
Southern California home prices have increased to $650,000, overall, over 16% since one year ago, and sales have increased 13% year over year: By county, OC at $971,000; LA at $697,660; Riverside $495,500; San Bernardino $390,000; San Diego $730,000; Ventura $776,000.
This is the strongest growth in California in 7 years.
Only 5% of sales are all cash, but two of five homes were sold to first time homebuyers. And 33% of those 1st timers had more than 20% down payment!! Yes, parents, friends and family are helping them out.
So as the charts above show, showing traffic shows the homebuying momentum as the PEAD forms are tracked in various counties. Lately the showing pattern is: put home on market mid-week, showings take place at 15 minute intervals Friday, Saturday, Sunday, offers are due in Sunday or Monday, by Wednesday of the following week, the buyer is found. Needless to say, winning offers are completely documented with solid loan pre-approvals and proofs of funds. This is a hectic time for buyers who must compete and be prepared (on some properties) to overbid.
With the lowest housing supply in years, most sellers who can think about making a change will get showing activity. If you're wanting a home value estimate, this is a good time to contact a Realtor.
See the complete housing report here
Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996
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