Monthly Housing Market Update

February 2021

Transcript:

[Justin]

Hey guys, It’s Justin and Andrew here from Andrew Lewis Homes again with your monthly market update.

[Andrew]

As always we love to just take the numbers that you guys have been hearing, all the stuff you’ve seen on Facebook, and hearing from other realtors in emails and all that good stuff, to make sense of it all. It’s been a crazy few months in real estate, so let’s help you decipher what that information means to you as a buyer, a seller, or a homeowner that’s sitting on a ton of equity right now. The first number that we always love to speak on is the amount of closed sales. It just tracks the activity for the market.

For last month, Murrieta and Temecula had 331 closed sales. That’s up almost double from previously. But really, that’s just leftovers from the slow down during the holiday season. That number should always float around 300 or so in our area.

[Justin]

And gosh, do I love holiday leftovers!

[Andrew]

Amen!

[Justin]

What I want to jump into with yall is 331 homes sold last month. Also, the Days on Market is telling. There’s only been 11 days on market for homes that are under $700,000. 11 days, that’s two weekends at most on the market, and that’s average! That means some of those hot homes you’re seeing, they’re selling in three, four, days.

[Andrew]

Some before they even come to market!

[Justin]

That’s absolutely true. We’ve got a couple of those ourselves. Something else on there too for you is the Month’s Supply. What that means is that homes are selling fast so there’s less inventory. Not less transactions, less inventory. What that means is your month’s supply, if we were not to sell another home, or rather list another home, on the market, starting today, we would only have 14 days until all the inventory in the valley is eaten up. 14 days! That is a crazy statistic. Two weeks and there wouldn’t be another house for sale.

[Andrew]

That’s a record low for our area. We’ve never seen that kind of low inventory. So, when you hear people saying that, it’s absolutely true! We need definitely need more homes to keep up with the buyer demand that we’ve got here in the area.

[Justin]

So you’re probably wondering what that means to you, which Andrew is going to jump into that now as far as home pricing.

[Andrew]

Right! Really what we’re seeing right now is the Toilet Paper Effect. That’s fresh in our minds from just this time last year.

[Justin]

Too fresh in our minds!

[Andrew]

[laughter] Too fresh!

The Toilet Paper Effect, it’s supply and demand. It’s exactly what we saw last year with that commodity and we’re seeing it right now in the housing market. There are very few homes for sale and what that’s doing is driving prices through the roof.

Right now the Percent of List Price to Sales Price, that’s the number if they list a home at $400,000, what number do they actually get. Right now it’s at 102%. That means is if you list is at $400,000, on average you’re getting $408,000. It doesn’t seem like a ton but we’re actually seeing that number even more inflated in some of the different price categories.

We’re seeing 105, 106, 107 percent. Just a few months ago we had 113% on one of our sales.

[Justin]

It also depends on the agent you have listing your home, because we actually took a $415,000 home and were able to consult the client - just a self brag for a second for both of us - and what price are we in escrow at?

[Andrew]

$450,000!

[Justin]

450! So you can either list with the average agent for 400 and get 408 or you can do some upgrades, get to 415, and get to 450. One sounds like a better deal to me.

[Andrew]

So the other stat that we look at is the Average Sales Price. What we’re seeing is a huge jump in the average sales price right now, mainly due to low inventory on that side. And Justin will tough on that, but our average sales price right now for Murrieta is $661,000 for last month. That’s actually up $85,000 from the previous month. It doesn’t mean prices have gone up that much high, it just means that the amount of homes sold in the lower categories, there are fewer of them.

In Temecula, it jumped up to $707,00, which is about a 40 sum thousand dollar increase from last month.

[Justin]

And to Andrew’s point, what we’re seeing, we’re not seeing $400,000 homes go for 661, don’t worry, but what we are seeing is we’re not seeing very many homes in that market segment of first-time homebuyers being listed at all.

26 in the entire valley were sold under $450,000 last month. That’s insane! Only seven in Temecula. So good job Murrieta holding your weight on that one. Temecula step it up a little bit! What that means to you as home sellers or investors who own a second home in the 400,000 range, the market is screaming for your home and buyers would absolutely show their appreciation by taking your price at 415, 450, real quick.

[Andrew]

Absolutely! It’s a great time to step in and sell. And if you’re a buyer and you’re going, “Oh my goodness, this sounds absolutely crazy!” What we say right now is that interest rates are also at historic lows. They crept up a little bit over the last few weeks, but still at historic lows so money has never been cheaper to borrow.

[Justin]

One big takeaway for you as a buyer is this, it has never mattered more than ever, same for a seller, the agent that you choose.

We actually just launched our VIP Buyer Program for you, to where you get access to instant inventory from us and products that other people don’t have in the public market.

We’d love for you to reach out if you’re interested in that. You should be receiving an email, or should have already received that as well. We don’t want to leave you without guidance in this crazy market. We want to help you and guide you home.

[Andrew]

Absolutely.

There’s your Monthly Market Update. Hope that helps. Reach out to us if you have any questions

[Justin]

Thanks, guys! Have a good one!

[Andrew and Justin]

[Wave to audience]

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