Ventura County Home Sales: May 2020

Ventura County Home Sales Report May 2020: Corona Virus’s Impact So Far

We already know that Ventura County homes sales are different in a pandemic.

We felt our first month of the full impact in April’s sales.

Here’s the sequence so far this year:

It all started out with a bang. Plenty of demand, a strong economy, and we were poised for a year of increasing home prices. Home sales for January, February, and March 2020 (1st quarter) were moderately down supply-wise, even though we knew about the existence of the Coronavirus.

For that first quarter, buyers shopped for homes in the standard way. You know, our old life, how we’ve done real estate for decades. Open houses, buyer tours, appointments. Fun and excitement.

Not the mask-wearing, lock-down/ hunker-down, paranoid-to-touch anything home shopping experience.

Then April arrived.

The first full-blown evidence of the virus’s real impact. A screeching decline.

Down, Down Down Across the Board

To get a proper perspective, you need a 30-45 day look-back. That’s because from the time escrow opens until it closes takes that much time. It’s not a simple matter of looking at the activity of only April. Instead it is dependent on the preceding 4-6 weeks.

April in Ventura County showed the results of the governor’s shutdown that began on March 16 and it became glaringly obvious that the virus was having an impact on real estate sales. Glaringly is an understatement.

A big surprise?

Not really. If you lock people in their houses, home buying and selling slows. Big time.

Like being in a twilight zone. Fewer cars on the street. Scary pictures on the news. Endless doom and gloom that if you want to live, you have to stay inside, and dire warnings about leaving your uncontaminated home to risk it in the wider world.

There was an overall sense of caution.

This was NOT only in Ventura County. On a regional level, the California Association of REALTORS® reported a dip in sales in ALL major regions of the state. READ THE REPORT.

How bad is DOWN?

Practically speaking, there were even fewer homes for buyers to choose from. Yes, smaller supply.

Any good news? Days on Market DID NOT increase. Homes did not languish.

Months of Supply (Absorption Rate) went down. Again, no languishing.

Conclusion: It was still a seller’s market. 

Real Estate Market Trends: April Sales Are Where We First See the Coronavirus’s Impact

How bad was it? Basically HALF the number of choices that we had last year. Gulp.

Here’s what last month’s report looked like. April 2020 Report (March’s sales)

Real Estate Market Data: Specific Data for Days on Market, Sales Price, Pending Sales, Average Price

Here’s a summary of April 2020 market statistics:

• Median home sales price:
  • UP 3.9% YOY
  • April 2020 = $675,500 vs April 2019 = $650,000
  • Prices are holding up
• Average single family home sales price:
  • UP 4.5% YOY
  • April 2020 = $795,100 vs April 2019 = $760,783
  • Prices are holding up
• New listings:
  • DOWN 45.8% YOY
  • April 2020 = 466 vs April 2019 = 860
  • FEWER choices.
  • March 2020 had 619 new listings, so they were down month-over-month (MOM)
  • It’s strange to see a decrease this time of year (Thank you, Covid. Sarcasm.).
• Active listings:
  • DOWN 31.7% YOY
  • April 2020 = 1315 vs April 2019 = 1926
  • March 2020 had 1306. A flat line. Not much change month to month.
• Pending sales:
  • DOWN 52.3 % YOY
  • April 2020 = 291 vs April 2019 = 610
  • That’s half the volume of last year. That’s what a virus will do.
  • March 2020 had 430. So it went down even more from month to month.
• Closed sales:
  • DOWN 33.1% YOY
  • April 2020 = 386 vs April 2019 = 577
  • This is the most important category. What actually closed escrow.
  • March 2020 had 473.

Active listings in the context of this report represents 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.

The Charts

Click the charts below to enable an interactive pop where you can hover to see the previous month’s numbers.

New Listings in April 2020

Pending Sales in April 2020

Real Estate Market Statistics: Ventura County Zip Code Level

This shows how specific zip codes compared to each other.

Absorption Rate and Months of Supply Housing

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.

Take a look at everything highlighted in yellow. Although Ventura County inventory would run out in 2.6 months, some zips have even fewer months of supply.

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

Properties are moving, in spite of the shutdown. Prices remain strong. Fewer choices mean increased competition. Decide quickly.

You will be scrutinized by your lender. They’re gravitating towards safety. They’ll make sure you’re working and still have a job as your purchase moves through escrow.

Be patient and flexible. Don’t give up.

What Sellers Need to Know

This is still a seller’s market. A low supply of active listings and low months of inventory means less competition and is likely good news to your ears.

Make sure your home is in the best possible condition. Buyers are more dependent on photos than ever before. Photos are crucial right now.

Stay positive. Keep your wits. Your house will sell.

How to Shop 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.

San Fernando Valley & Santa Clarita Valley: Similar Picture to Ventura County

Mortgage Income Requirements

Wrap Up and My Two Cents

We’re in uncharted territory with this virus. With supply so very low, prices remained strong in April’s sales.

Note to sellers: It’s a good time to get your house ready to sell while you’re sheltering-in-place. Home Depot is one of the only non-restaurant stores you can get into!

Supply is low and people still want houses and need a place to live.

Think with your own brain and don’t let the news mess with your head. Look at the data and facts and make your best decision.