Homeowners across the nation watched the housing market take a brutal pounding during the Great Recession as their equity vanished. Jamie Duran, President of Coldwell Banker Southern California, observes that a new trend has emerged. Homeowners remain in their homes for a lot longer as they are now content in simply keeping their home. As the Southern California market continues to emerge from the pandemic there are still fewer homeowners who opt to sell every year, and despite record home values, this trend is continuing. Duran further notes that many are turning their homes into “Forever Homes”. Many have taken advantage of record low interest rates to refinance and remodel their current homes into a place where they plan to retire.
Duran says that buyers must understand that this is a growing trend for now and need to continue to be prepared for this to be part of the cause of low inventory in their home search. She further states that sellers should realize that their home is worth more today than ever and should consider selling if they plan to move either up or down in the foreseeable future to take advantage of today’s low interest rates.
Current inventory levels remain an issue and are not keeping up with torrid demand.
- Southern California began July of 2021 with 36,217 active listings 57% below pre-Covid levels of June of 2019. Riverside and San Diego Counties were both below over 70% of 2019 levels.
- Thirty-eight thousand six hundred and eighty- five new listings hit the market in July of 2020. This was a 32% decrease from July of 2020 with San Diego having the biggest year over year decrease of 47%.
- Closed sales were 1% less than July of 2020 with Los Angeles County experiencing a 13% gain over July of 2020.
- Active listing inventory increased minimally to 38,685 to a number that is 32% less than July of 2020 homes for sale of 56,729.
- Average Sales Price remained relatively flat at $1,017,270.
High-end Luxury Market is Strong
- There were 114 sales of homes more than $10,000,000. This is up from 64 in June of 2021.
- Additionally, 136 new listings hit the market priced in excess of $10,000,000.
- Current homes for sale over $10,000,000 dropped to 700, down from 726 in June of 2021.
- In the last twelve months ended 07/31/21 sold volume of homes greater than $10,000,000 almost doubled to $16,288,76,672 from $8,286,852,342 in the prior twelve-month period.
- Volume of homes sold greater than $5,000,000 more than doubled in the last twelve months ended 07/31/21 to $42,836,831,514 from $20,738,735,200 in the prior twelve-month period.