Ventura County Home Sales: July 2020 Report’s Exciting Increased Escrows and Sales

Ventura County Home Sales: Not Back to Normal…But MUCH Better

The pandemic is still underway, but things are easing up. More inventory, more sales.

In contrast to the full lock down continuing in May 2020, June 2020 saw the easing up of restrictions, and it shows in the home sales data. Activity was up all around.

Things looked better.

As I’m writing this report in July, people are continuing to venture outside more. On a negative note, virus cases are up. We’re also in a vacillating open/close situation on the state level.

Keep on Looking Back 30-45 Days

In terms of evaluating the condition of the market, we’re looking at the actual calendar month of June 2020. I’m writing this mid-July.

For home buyers who closed escrow in June, the process started earlier than that. Look back 30-45 days to account for the time from when somebody fell in love with a house and wrote an offer, opened escrow, journeyed through the escrow process, and finally closed with keys in hand.

That puts us in May. We were still adjusting to the pandemic.

We’re beyond that now.

CAR (California Association of REALTORS®) Chief Economist, Leslie Appleton Young, presented a housing outlook seminar to SRAR, one of the local realtors’ associations, on July 20, 2020. Here’s the link

Real Estate Market Trends: Ups and Downs

If you want to see how things compare to last month, just take a look at the June report. June 2020 Report

Real Estate Market Data: Days on Market, Sales Price, Pending Sales, Median Sales Price, Average Sales Price- June’s Home Sales

Here’s a summary of June 2020 home sales market statistics for residential single family homes.

• Median single family home sales price:
  • UP 10.9% YOY
  • June 2020 = $715,000 vs June 2019 = $645,000
  • Increased median sales price
• Average single family home sales price:
  • UP 15.1% YOY
  • June 2020 = $882,745 vs June 2019 = $766,620
  • Increased average sales price
• New listings:
  • DOWN 21.3% (May 2020 was down 29.6% YOY)
  • June 2020 = 684 vs June 2019 = 869
  • May 2020 had 669 new listings, so they were up month-over-month (MOM)
• Active listings:
  • DOWN 33.0% YOY
  • June 2020 = 1433 vs June 2019 = 2137 (700 fewer actives for sale this year. Wow.)
  • May 2020 had 1494. Fewer new listings this month than last.
• Pending sales:
  • DOWN 2.8% (Compared with last month’s 41.7 % YOY)-Definite improvement!
  • June 2020 = 583 vs June 2019 = 600 (not much change)
  • May 2020 had 411. That’s 171 more escrows than last month. Definitely improving.
• Closed sales:
  • DOWN 19.3% (May 2020 was down 55.1% YOY)
  • June 2020 = 498 vs June 2019 = 617
  • This is the most important category. What actually closed escrow.
  • May 2020 had 290. More sales than last month. Good.

Here’s a link to an article correlating the low inventory to increased sales price. Worth a read. Housing Wire article

Active listings in the context of this report represent all homes that are in the process of being sold. This category encompasses the MLS categories of Active, Active Under Contract, and Pending. In other words, they are at any stage of “for sale”, but have not sold yet.

Real Estate Market Statistics: How’s Your Zip?

This infographic shows how specific zip codes compared to each other.

Zip Code Winners and Losers

Simi Valley’s 93063 had 32 single family home sales. This was down 43.9% from June of last year’s 57 sales .

Agoura Hills 91301 had 15 SFR sales. This was down 51.6% from June of last year’s 31 sales.

Oxnard was particularly low for single family home sales. Oxnard’s 93030 had 9 SFR sales, which was 66.7% lower than last year’s 27 sales. Imagine tryig to find a home where there were only 22 new listings, which is what happened in 93030.

Oxnard’s 93033 had 14 sales which was 53.3% lower than last year’s 30 sales. It had 8 new listings.

It’s hard to find a home in Oxnard! Just not enough inventory, and this is a big beach month!

Absorption Rate or Months of Supply: The Barometer of Inventory

Absorption Rate or Months of Supply shows how long it would take to sell the existing inventory if no new homes came on the market. Also included in the chart below is New SFR Listings, which is the number of new listings to come out for the month. New listings = New choices, and buyers need choices.

Take a look at everything highlighted in yellow. Although Ventura County inventory would run out in 3 months, some zips are under 2 month’s supply. That’s tight.

Absorption Rate is calculated based on current inventory divided by the average monthly pending sales from the last 12 months.

What Buyers Need to Know

Things are improving as far as number of choices. It’s still down from last year.

The decreased inventory makes it all the more important for you to be fully pre-qualified and ready to go. There is competition for the best houses. If you find something you like, don’t wait. Others are competing with you for the limited supply.

An ongoing reminder: Be prepared to be scrutinized by your lender. They’re gravitating towards safety and exercising caution. Due to the unemployment rate, you should expect that they’ll make a call to your employer before funding. They’ll verify that you’re still working as your purchase moves its way through escrow.

Don’t take it personally.

What Sellers Need to Know

This is still a seller’s market. It’s been this way for several years now. The pandemic hasn’t changed this aspect, at least not so far.

Remember to price your home competitively, in line with the market. A low supply of active listings and low months of inventory means less competition and is likely good news to your ears. Your house still has to be appraised by the buyer’s lender, and super inflated values don’t necessarily close. If the price gets bid up into the stratosphere, you might feel good, but the appriaiser is likely to value your house closer to its earthly value. The lender will lend based on the appraised value.

In this age of hyper cleanliness (think hand washing and hand sanitizer), make sure your home is spotlessly clean. Think surgically clean.

Buyers are required to view the photos online, and photos show everything. There are also 360 tours and videos that show every nook and cranny.

Most buyers still want to see the house in person before deciding to purchase, and they’ll be signing disclosure paperwork before seeing your home in person with their realtor.

Stay positive.

A Guide on Shopping For Homes During A Pandemic

People are still buying, sellers are selling, sales are closing. Showing rules are the new adjustment we all have to make to stay safe. Here are some things you need to be aware of as you start your home buying and selling process. These are the rules for right now.

Nearby San Fernando Valley

Check out the increase in opened escrows. Current 2020 year is the blue line.

Mortgage Income Requirements-San Fernando Valley

Wrap Up

We’re in uncharted territory with this virus, and each month brings something different. With supply continuing to be low, prices continue to hold or increase.

Note to sellers: Keep on getting your house ready to sell while you’re sheltering-in-place.

Every week seems to hold its own new drama, so don’t let the news mess with your head. Think with your analytical brain and be sure that facts figure into your decision making, especially during these trying times.

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