The Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, climbed 1.6% in August. What does this mean for Buyers and Sellers and in today’s Real Estate Market? I discuss all of this as well as interest rates in my latest Real Estate Market Update 2019
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Pending Home Sales are now up month over month and year over year in all 4 major regions of the US. What does that mean? It means that buyer demand is strong and there are a lot of buyers out there still searching for the perfect home.
The strong buyer demand is likely due to low interest rates and low inventory in most major cities. Keep in mind that it all depends on your price point whether or not it’s a buyer or sellers market especially in the Orange Count and Huntington Beach area of California.
While buyer demand is still strong, once you get into the luxury price points of $1M and above, the market starts to slow with days on market and the time it takes for a home to go from listing to escrow. In fact, the days on the market almost double in some price points with it taking nearly 555 days on market on average for homes in the $4M+ range while homes in the $2-4M range are selling on average around 155 days.
With that said, it’s as imperative as ever to price according to fair market value from the start to ensure you are positioning your home to receive top dollar in the shortest possible time.
It’s still a Sellers Market when priced under $1M with the average days on market around 85 days and even shorter in some areas of Orange County. This means that Sellers still have the upper hand in negotiation when priced accordingly in this price range while the $1M+ market has turned into more of a Buyers market.
Is the real estate market crashing?
No, No, No…………There is no Real Estate Bubble at the moment and the market will continue on this same path for at least the next year. The fundamentals of the economy are still strong with interest rates near all time lows. In addition, the inventory is still low especially in the lower price ranges meaning we will likely see continued appreciation in that price range for the next year or so.
If you have additional questions about the housing market 2019 or a potential real estate crash, please comment below or email me directly.
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