Who would’ve expected a hot market in the midst of this pandemic? The reality is, the real estate market is going bonkers right now.
Rates have consistently hovered around 3%, some days dipping down to 2.875%, which is fueling homebuyer motivation. National Association of REALTORS® Chief Economist Lawrence Yun remarked too, that, “with the sizable shift in remote work, current homeowners are looking for larger homes—and this will lead to a secondary level of demand, even into 2021.”
Many would-be home sellers are refraining from listing their properties—inventory is way down right now—, perhaps under the impression that now is not a good time to sell. However, the market is saying otherwise! And the suppressed inventory is heating up the competition over what listings are currently available.
The statistics below are for single family homes in San Luis Obispo City and San Luis Obispo County, with 3-month rolling averages:
The major takeaway is that home values hit a bit of a trough early into the pandemic, but have rebounded. “Inventory Months Supply” is a bit arcane, but it simply means, at the rate homes are selling, this is how many months the current supply of homes will last—right now, 3.2 months.
Generally, four to six months is considered a balanced market and is associated with moderate price appreciation. A higher number of months spells a “buyer’s market”—more homes than buyers. And a lower number spells a “seller’s market,” which is definitely what we’re experiencing today.