Good News in the Desert! Want some good news? (In the California Real Estate Market)
Inventory Now Exceeds Pre-Pandemic Levels
After more than two years of consistent year-over-year declines in the number of active listings available for sale, the inventory shortage has shown consistent signs of improving in recent weeks. Last week, there were more active listings on the market than at any time in the past two years. Nearly 48,000 were on the market last week, which edges out the week of May 23, 2020 as the highest level of active listings since we began reporting weekly MLS statistics at the beginning of 2020. It is important to note that listings still remain depressed by historical standards, but it is encouraging to see them trend upward on a more consistent basis this year.
Rising Inventory Helping Homebuyers
As the number of homes to choose from rises, homebuyers are finding the market less frenzied than at any point since the pandemic began. Last week, the percentage of homes that sold over list price dipped to 46% of closings. That is only the second week since September 2020 where fewer than half of homes sold above list price. In addition, more sellers are willing to reduce their price, with 37% of active listings down from original list price last week—also a 2+ year high. Taken together with a recent reduction in rates, buyers currently in the market should be encouraged by rising prospects of finding a home and having their offer accepted.
So, what does all this good news mean for you as a buyer in the Desert? More homes on the and the market is “less frenzied” than last couple years … more to choose from and a little longer on the market.
Even if interest rates are higher than they were late last year, they may go even higher by the end of the year – so, if you’re looking to purchase your home in the La Quinta or Palm Springs area, now may be the best time to jump in.
Give me a call and let’s discuss what homes are listed and what your options are.