Market Shift September 2019

Maybe it shouldn’t be a surprise that the as mortgage rates have crept back up, so has inventory. As of the middle of September 2019, we’re still seeing high 3’s on thirty year fixed rates but the super low 3’s are gone for now.

So what is inventory looking like? Let’s take a look around town.

  • Redondo Beach: 152 listings, 87 in escrow, 66 sales in August.

  • Hermosa Beach: 70 listings, 21 in escrow, 19 sales in August.

  • Manhattan Beach: 127 listings, 38 in escrow, 39 sales in August.

  • Rancho Palos Verdes: 135 listings, 72 in escrow, 50 sales in August.

  • Playa Vista: 45 listings, 17 in escrow, 14 sales in August.

  • Marina Del Rey: 97 listings, 36 in escrow, 37 sales in August.

I could keep going with more examples but the trend doesn’t change much.

Inventory is running at 2-3 times last month’s sales. In escrow is roughly equal to up to 1.5 times last month’s sales.

So we are still mostly in a Seller’s Market as it has been historically defined, but it sure doesn’t feel like it. Why is that you might ask.

Well to start with, properties are sitting longer and more have price reductions than we’ve seen in recent times. That trend is likely to continue because many Sellers, enabled by their agents, are simply pricing too high. The current generation of buyers will just pass on properties that are over priced. Many listings with reductions are selling for even less than the last list price. You may still see multiple offers and over bids but only on listings that either have been priced well below the market or those that offer very attractive amenities or are at the entry price point for a specific neighborhood.

My advice for Sellers stays the same: don’t over price.

If you are a Buyer, you really need to do more than just go to Open Houses. As inventory sits for longer, some of the best buying opportunities will be found in the listings that have lingered on the market the longest. That means you will need an agent to guide you through the process.

You will also need to be working closely with a lender who can best advise you as to various programs and what is going on with rates. Due to thee 40-50 basis point swings we have seen in the 10 year bond over the last 3-4 months, rates have been all over the place and if you were pre-approved a month or so ago, rates may be looking much different now.