March 2021 Crazy Home Sales Report: They’re Flying Out the Door At Lightning Speed

Ventura County Housing Market Update for March 2021 (Just in time for St. Patrick’s Day)

Reminder: For the March Home Sales Report (what you’re reading), we are looking at data from FEBRUARY. Conversely, if you want to see the January data, check out the FEBRUARY REPORT.

The housing market is on steroids. And it’s not letting up. It’s taking even LESS time for homes to sell due to the voracious demand and scarcity of inventory.

Frenetic is the word.

Days on Market Keeps Going Down

You can tell what it’s like out there by looking at the Days on Market. It’s a barometer for appetite.

Homes are getting gobbled up faster.

From 63 Average Days on Market in February 2020 to 31 Average Days on Market in February 2021.

HALF the time.

Okay, here are the circumstantial facts.

In the interim from February 2020 to February 2021, we had a pandemic. No newsflash there.

There was a temporary slowing when we did the “flatten the curve” and the lock downs in Ventura County and Los Angeles County (and all of California, for that matter).

But that temporary lull in activity is long gone. After 2 months of sequestering, home sales took off like a rocket.

REALTORS® and the general public immediately fell into the new Covid protocol for showing homes. The P.E.A.D. became the new permission form for entry, and everyone adjusted to sanitizing each and every door handle.

So what about now? We’re opening up more and more in Ventura and Los Angeles County. Hey, we have indoor dining and outdoor dining, at the time of this writing. Wahoo!

In the natural course of events, as we’re moving into Spring, THEORETICALLY inventory is supposed to increase. That’s what is expected. Fingers crossed.

In a nutshell, Days on Market is DOWN, and that means the market is moving at warp speed.

Number of Home Sales Up Marginally Year-Over-Year

Have a look at the bar chart below to see the February home sales last year vs this.

Not a dramatic increase. In fact, nearly the same amount of increase in sales as the previous year (7-plus-ish).

So home sales go up and down. Yeah, duh.

That’s not what’s unusual. It’s the intensity of the competition.

There are more buyers than houses available, and they’re competing for a limited supply.

Let’s Talk About the Prices (They’re Going Up)

See that icon? That’s the dollar money symbol, as in moo-lah.

And the chart? Now THAT is UP. If you click on the chart above, it’ll open in a new window and give an INTERACTIVE chart. You can click on various months to see the exact prices.

Just look what happened since the beginning of 2020.

Yup.

Real Estate Market Trends: The Inadequate Supply is Driving Prices

An issue for today’s sellers is where they will go IF they sell their current home. Sounds like a reasonable concern.

Most people will do anything to avoid moving twice. Nobody wants to put their belongings in storage and go to a rental. But making a seamless, one-moving-truck-move is tricky in today’s environment.

There are strategies and solutions, but it’s not as cookie-cutter-simple as it used to be.

That’s because it’s hard to find a house to MOVE TO.

Real Estate Market Statistics: How’s Your Zip?

In terms of quantity: Simi Valley wins again.

But take a look at Thousand Oaks/Westlake Village 91362 as well. Look at those condo/townhome sales!

However…In a county in excess of 850,000 people, this is not a lot of sold houses. We absolutely need more supply.

The BROADER Picture

National. State. Just not local.

Here’s the California Association of REALTORS® forecast. They think sales, prices and listings will be UP next week (after March 7-13).

What Buyers Need to Know

With prices going up, you need to stay in communication with your lender. Increasing interest rates erode your buying power.

You’ll likely be in a multiple offer situation, so know the bottom line price that you can afford. You do this by staying in ongoing contact with your lender about precisely the dollar number that you can afford.

A quarter of a percentage point makes a difference.

What Sellers Need to Know

DON’T put a ridiculously low listing price with the goal of getting lots of offers. That drives buyers and their agents crazy. Put a realistic price. Nobody likes to be played or manipulated.

FIX your home up as much as you can before you sell. Make it neutral. This is a market where going that extra mile can pay off.

CONSULT your REALTOR® before you tackle rehab, repairs, and sprucing up. Some things have a great return. Others, not so much.

There are givens that buyers expect. A functioning roof. A working air conditioner. These are “givens.”

The rest is “gravy.” Remodeled kitchen. Updated baths. Dual-pane windows. These are “gravy”. They make the place pretty.

If you are in doubt about what to fix, strategize with your REALTOR® about the smartest things to do to get your house ready to sell.

That way you’ll TARGET the most important tasks and not waste unnecessary money on improving the fluff that won’t pay off.

And….until Covid passes, here are the rules below for seeing houses.

The 6 Ongoing Covid-19 Home Shopping Rules of the Road That You Need to Know

Wrap Up

Same low supply. Will it increase in the months to come? Boy, do we hope so!

Stay tuned! This is Mr. Toad’s Wild Ride.

If I can be of help or if you need any additional information, please don’t hesitate to contact me directly.

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