As things begin to return to normal, we are seeing some changes in the housing market as well. It’s still competitive and a strong seller’s market, but we are noticing some adjustments worth highlighting. For the second straight month, inventory has increased month over month, yet is still down double digits from last year. Prices continue to remain strong, with every individual city seeing considerable gains from the same time the previous year.
The buyer pool does seem to be thinning out a bit. I think some buyers have realized that this isn’t the market for them. After weeks or even months of touring homes, writing offers, and striking out, they seem to be focusing on exploring other options for now. Homebuyerhopefuls who don’t have extra cash to offer over the asking price or buyers who don’t want to start off with negative equity have either taken themselves out of the market or even considered relocating out of state.
Sellers are still seeing top dollar offers, but those offers are also slowing. And some sellers who thought they could sell for far above their home’s value are realizing that while demand is strong, they are having to reduce prices to attract prospective buyers. This might seem like a bad thing, but I believe it’s necessary for a healthy market. We can’t sustain the price appreciation, and it’s not helping those wishing to enter the market. Housing affordability remains a very hot topic among our local cities as well as with our legislators in Sacramento.
AB832 was just signed into law last week. This Bill extends the eviction moratorium until September 30, 2021, while providing financial assistance for landlords and tenants covering up to 100% of rent owed. While we don’t support eviction moratoriums, we are happy to see some relief for landlords. There are of course restrictions and guidelines, and if you want to apply for some funding assistance, please visit http://housingiskey.com.
Finally, I promised you two slides from the National Association of REALTORs® ChiefEconomist last month, then forgot to include them in my report. So I am including them this month. Sorry for any inconvenience!
As always, I am available if you have any questions about the report. Until next month.
Adam A. Ruiz, Government Affairs Director, Southwest Riverside County Association of REALTORs® – (951) 326-4698 – http://srcar.org