New FOR-SALE Signs
Nearly a third of all homes that enter the fray during the year come on the market over the course of the next three months.
The spring of 2021 will be no different. The issue right now is that there are simply not enough homes available to satisfy today’s insatiable buyer’s demand. With only 2,366 homes on the market, the lowest level since tracking began in 2004, it is as if the family car’s low fuel light is “on” and everyone crosses their fingers and toes that there are enough fumes in the gas tank to safely arrive at the closest gas station. There are 43% fewer homes available to purchase compared to last year’s 4,161 homes to start March. That is 1,795 fewer FOR-SALE signs. Making matters worse, there were 447 fewer homes placed on the market in January and February compared to the prior 5-year average, 7% fewer. While that may not seem like a lot, ask any buyer if they want to see more homes placed on the market. At this point, every additional home is a welcome relief.
Today’s ultra-low active listing inventory is due to surging demand that started last year as mortgage rates continued to descend to uncharted levels. From the start of the pandemic to the first week of January rates reached 17 record lows. Soaring demand is the largest contributing factor to today’s anemic supply of available homes. Further exasperating the situation is that the fewest number of homes to come on the market from October through January. Buyers who were swarming listed homes at the end of 2020 were not getting much help from homeowners. More homeowners skip the months of November and December, the Holiday Market, than any other time of the year. For perspective, there are 63% fewer new FOR-SALE signs in December compared to May.
The Bottom Line: Finally, more homes will come on the market starting this month, and the spigot will remain fully open through July.
More homeowners assert that they will list their home during the spring than any other time of the year. The numbers support what they say, and with the pandemic waning, this year will be no different. Everyone is acutely aware that the housing market is the hottest sector of the economy and many homeowners will be lured to taking advantage of this incredible market. They will not want to miss out on one of the strongest markets in years.
Click on the image below the Read the Orange County Housing Report.