Over the last couple of weeks, we have talked about it being a good time to sell as well as a good time to buy.
I saw the attached information provided by good friend and local economist Steven Thomas, which dramatically shows how different this year’s market is to past years’. Steven’s story, which is a very visible one, is that we are enjoying a “V-Shaped Recovery”
Figure #1 shows Orange County demand for the last 4 years. As you can see, in years past, demand tends to peak in May and June, and by July starts to drop off. By August, demand really falls off, and is dramatically lower as we head into the Fall. Not so in 2020, however! Demand is actually peaking into June, and, though not shown here, continues to increase into July. Hence the “V-Shaped Recovery” His conclusion, with which I concur, is that this recovery will continue for several months.
Figure #2 shows expected Market Time for the same periods. Market time is an indication of the type of market we are experiencing. Longer market times indicate more of a buyers’ market. Shorter market times suggest a sellers’ market. He notes that the market time dropped rapidly into June, creating a slight sellers’ market.
Well, we expanded that search to bring us up to date as of this writing (July 24, 2020). In the last 30 days, there have been 3,126 pending sales (active listed homes that went into escrow. If you look at Figure #1, you will see that that number is higher than any month on the table!
We did the same for market time. Average market time has dropped to 52 days. Typically, a good sellers’ market is under 60 days.
This is a very good sellers’ market indeed.
Bottom line, there is still time to take advantage of this strong Sellers’ market.