Market Snapshot:
With all of the speculation and uncertainty going on, I wanted to put together a snapshot of what is currently happening in our local real estate market. I did not include any information on our average sales or list prices, because it is too soon for us to see the effect this crisis is having on those numbers.
The most telling numbers are the significant decline in active listing on the market. There is a 39% drop in Newport Beach, a 45% drop in Eastside Costa Mesa and a 37% drop in Corona del Mar from this same time last year (2019). Average days on market is also increasing (everywhere except Newport Beach – but I believe this can be explained by the large number of homes that have been removed from the market).
Our number of closings stayed steady (increased in CDM) in March 2020 compared to March 2019. Some might use this to say, “Look, homes are still closing. Everything is fine.” I disagree. The reality is, our 2020 started hot. Homes were selling within the first few weeks on market and in many cases with multiple offers. Without the crisis, our March closings would have been significantly higher. The homes that sold in March are all deals that came together in February prior to the crisis. End of April will be a more accurate indicator of our current situation.
We still have pending sales; however, I estimate that a number of them are from escrows that have been extended and are now set to close in April rather than March. I have seen some new homes go under-contract but I imagine there were price concessions made.
The Takeaway:
Our local real estate market has hit pause. It is too soon to say what the ultimate outcome will be on pricing. We have a severe drop in active buyers, but we also have a severe drop in active listings. Currently our supply and demand are in sync – both low.
