May is the new March
It is time to review the marketing statistics for May 2020. This year, May is the new March. The numbers entering this summer are what we usually expect coming into spring.
The buyers are starting to show up—great news for those currently listing their property for sale or contemplating doing so.
Comparing historical norms to today’s numbers would make one think we are still tanking. But hold on Partner.
In the three reporting counties, the number of homes under contract (pending) has skyrocketed–anywhere from 40-80% compared to last month. Next month’s sold statistics should reflect similar gains.
Two words define current inventory levels and pricing power, “steady Eddy.” The average seller is not taking a pricing hit.
I classify the current market as neutral; technically, inventory levels say a seller’s market.
Our market is not broken–it is taking a breather. With that said, demand is going the way of twisting a rubber band; the torque reaches an endpoint and unravels. It returns to something familiar that everyone recognizes.
Helping the demand situation is the growth of our area. A Sacramento Bee article stated that as a percentage to the current population, two of the top three fastest-growing cities in California are Folsom (3.1%) and Roseville (2.7%).
Growth does have a way to salve ills.
Who knows what the future holds. Events are coming at us, the likes I have not seen in my many years.
I believe consumers are re-accessing their housing needs due to the way we work and play at home. Will open floor plans give way to defined areas, allowing for some private space?
What do you think?
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Enjoy the following charts.