September 2020 Home Sales Have Another Eyeball-Popping Month

Ventura County Home Sales: The October 2020 Hotness Report

Keep in mind for October’s report, that we are looking at data from September 2020.
If you want to see what happened last month (August 2020 data), here’s a link to the SEPTEMBER REPORT.

We just had an outstanding quarter of single family home sales. Also, our local home sales market just hit another record month. Again.

September 2020 climbed to #3 for single family home sales out of the past 5 years for Ventura County, and August 2020 was #3. If you consider only the last 3 years, July, August, and September have been the top 3 months. We have to go back to 2015 to get higher numbers.

Nothing short of amazing.

In August’s report (July sales), we had a busy catch-up month from a meager spring. That was followed by 2 more busy months. It wasn’t just a one month fluke.

And that’s in a pandemic, with our state and county not completely opened up.

We Busted Some Records…3’s the Charm

Ventura County Single Family Home Sales – A Winning Quarter of Solid Hotness

Here are the exact numbers for the best 5 months of single family home sales in Ventura County out of the past 5 years. July got displaced out of the top 5, and fell to #6. It’s still way up there.

The Importance of New Listings

It’s been a story of NEW LISTINGS to the rescue, for the whole summer.

Supply is at the heart of all the sales. Everybody knows that supply has been tight for years, and it still is. It’s an ongoing Seller’s Market and a question of more buyers than available houses.

In September there were 723 new single family listings vs 646 in 2019. For the local appetite, the buyers had more pickings than the same month last year. I imagine that made them happy.

Real Estate Market Trends: Ups and Downs

Just take a look at all the up arrows in the info graphic below. The only down arrow is in the length of time on market, which means a faster selling time. And Pending/Under Contract had only a fractional decrease of under a half percent, so it was approximately the same as last year (552 vs 554). Other than that, it was all UP arrows.

The 30-45 Day Look-back is still happening

That lands us at mid-July to late-August as the window when houses went under contract. This is calculating a 30-45 day escrow period.

The “stay at home” order is not having a deleterious impact on how fast houses are selling.

Real Estate Market Data: October 2020’s Numbers

• Median single family home sales price:
  • UP 18.9 % YOY
  • September 2020 = $789,000 vs September 2019 = $663,400
• Average single family home sales price:
  • UP 17.7 % YOY
  • September 2020 = $944,298 vs September 2019 = $802,299
• New listings:
  • UP 11.9 % YOY (More New Listings than a year ago.)
  • September 2020 = 723 vs September 2019 = 646
  • August 2020 had 766 new listings.
• Active Sales is not included for this month. There is an ongoing problem with the MLS data.
• Pending sales:
  • DOWN .4 % YOY (less than a half percent change)
  • September 2020 = 552 vs September 2019 = 554
• Closed sales:
  • UP 27.8 % YOY
  • September 2020 = 694 vs September 2019 = 543
  • This is the most important category. What actually closed escrow.
• Days on Market:
  • Average DOWN 29.2 % YOY
  • September 2020 = 43 vs September 2019 = 61
• % of Last List Price (Percentage of the last list price that house sold at) NEW CATEGORY
  • Median: 100 %
  • Average: 99.6 %
  • Sellers are getting close to full price. Prices are strong.
  • When you see percentages like this, it means that buyers are essentially paying full price. If you are a buyer in this market, you absolutely need to know this. It’s not like the market of years ago. There are also multiple offers right now.

Real Estate Market Statistics: How’s Your Zip?

The Medium and Large Pictures to Consider

Here’s a national perspective for October 2020 that was recently published.

The question on everyone’s mind is ‘how fast can prices keep rising?’…Although the housing market is still red-hot, there are some early signs we may be nearing peak price growth. Sellers’ asking prices are still up significantly from last year, but by a lower rate than they were growing during the summer.
Daryl Fairweather, Redfin Chief Economist
From PR Newswire, October 5, 2020.

And here’s a medium, state-sized perspective that was recently published in Realtor.com. It speaks of California events that area also impacting supply, namely the wildfires.

If one home is destroyed, that means one more home is NOT on the market. With the recent wildfires throughout the state, many people will need to rebuild or relocate elsewhere while the disaster is being cleaned up, thus affecting overall demand.

Here’s the link: http://www.realtor.com/news/trends/why-californias-devastating-wildfires-will-push-home-prices-even-higher/

What Buyers Need to Know in this Market

Be absolutely prepared before you shop. The competition is intense.

Get qualified, and not just over the phone where somebody gives you a verbal quote. You need a true preapproval where your lender analyzes your tax returns and runs your credit, etc. Get an approval letter from your lender, and give a copy to your realtor. You may need to prove your ability to buy (preapproval letter) before you even get to see the house! This is common these days.

Don’t pay Russian Roulette with the price. Remember that your first offer could very well be your last and only offer. Multiple offers are common. Make your best offer to get in the running.

Don’t wimp out. Don’t quit. Houses are selling to buyers that compete properly.

These are some of the best interest rates. Don’t be picky about waiting for the absolute lowest rate in the history of mankind. Get a good rate and consult with your lender about when and if to lock it.

An ongoing reminder: Once you’re in escrow, you’ll be scrutinized by your lender until the bitter end. Due to the unemployment rate, your lender will call your employer before your loan funds in order to verify that you’re still working at your current job. Lenders are cautious.

What Sellers Need to Know in this Market

The best market ever for sellers. This is a strong seller’s market. Intense demand, low inventory.

Price it right from the beginning. Buyers aren’t stupid and won’t overpay, and even in a hot market we see price reductions by sellers who priced too high at the onset. You can get top MARKET value for your home if you price it right and pay attention to market activity. Overprice it and it will sit, even in today’s intense market.

Make SURE your house sparkles. That means surgically clean, with absolutely no “ick” factor.

Showings take extra effort during Covid. All the mask and sanitizing rules apply. We’ve all adjusted to the new ‘pandemic normal” which is similar to how you’d go to the supermarket (masks, hand sanitizer).

Aim to get an offer in the first week to 10 days. This is a hot market. Price it to get an offer quickly.

Be aware that once you enter escrow, the buyer’s lender will require an APPRAISAL if the buyer is getting a loan. As sky high as you’d like to make the price–especially if it gets bid up– there is a down-to-earth appraiser waiting in the wings who will evaluate it based on past sales, and the lender will lend based on that.

So be reasonable. Be smart. Be cautious about super-inflated offers.

You are so lucky! You’re in an extreme seller’s market! Keep your head on straight, and sell your lovely home!

This is an amazing time to be a seller.

The Covid-19 Home Shopping Rules of the Road

Here are some things to be aware of as you start your home buying and selling process.

What Happened in Our Nearby Valleys?

Wrap Up

After 3 killer months, the crazy, busy market could continue into the holiday season. Let’s see what comes for Fall 2020!

If I can be of help or if you need any additional information, please contact me directly. I’ll help how I can.