How does our NSDCC inventory compare to last year’s counts? Here they are by price range:
Price Range
1H18 Listings
1H19 Listings
ACT Listings on 7/16/18
ACT Listings on 7/15/19
0-$1.0M
529
523
98
100
$1.0M-$1.5M
870
831
200
191
$1.5M-$2.0M
487
523
160
194
$2.0M+
862
898
979
1,036
The inventory under $1,500,000 is about the same as last year, and above $1,500,000 is a little bloaty.
There were 7% more listings between $1.5M and $2.0M that came to market in the first half of 2019 as sellers keep pushing higher. But not everyone deserves to be there just yet – there are 21% more active listings today in that $1.5M-$2.0M range.
Let’s look at how sales have been impacted.
Here are the NSDCC first-half closed sales by price range:
Price Range
1H18 # Sold
Median SP
1H19 # Sold
Median SP
0-$1.0M
380
$866,250
342
$859,000
$1.0M-$1.5M
506
$1,249,950
551
$1,225,000
$1.5M-$2.0M
244
$1,712,500
249
$1,744,000
$2.0M+
312
$2,645,000
298
$2,694,000
Mortgage rates that are at least 1/2% lower this summer are only keeping sales close to what they were in 2018 – and any extra inventory just waits in line, hoping good fortune will come their way.
Rich’s latest graphs are out, and this inventory history above shows how relatively few homes are for sale locally.
The median detached-home list price for the county today is $849,000!
He did mention a reader’s theory that in the era of online search portals, the inventory has become more efficient. Better-educated buyers are making faster decisions these days, which keeps the inventory counts down. But the hot buys have always sold quickly, and the over-abundance of data could be dumbing down the decision-making.
One of our favorite doomers says the tide is rolling out because inventory is up 37% in L.A.
There are 11.5% more San Diego homes for sale, year-over-year. But in an area of 3.3 million people, having less than 10,000 homes for sale doesn’t sound like panic time – and other metros have more:
Currently we have 1,029 NSDCC houses for sale, and last year at this time the count was 978, or 5% lower.
The tide rolls out at the end of summer- let’s see how many sellers stay on the market in 4Q19.
The NAR is pushing their latest propaganda above – but they they gloss over the fact that YoY rates were only 1/4% better in March and April when those decisions were made to close the sales in May.
Rates started rising in 2018, and you can see how it affected the pendings below. In a fortuitous change this year, rates are dropping and will probably see their 2019 low point in the next couple of weeks as the markets prepare for a Fed rate cut in July – but we aren’t seeing a bump in pendings just yet:
July is probably as good as it’s going to get for the rest of 2019!
Let’s note how the days-on-market is different for each price range:
NSDCC Price Range
Average Days-on-Market, Actives
Average Days-on-Market, Pendings
$0 – $1.0M
35
28
$1.0 – $1.5M
55
28
$1.5 – $2.0M
55
39
$2.0M+
93
115
New listings priced under $1,000,000 get reviewed for a week or two, and then most get into escrow within the first month. On the other end, the lower average DOM for actives than pendings means we’re having a surge of new listings. Sure enough, we’ve had 309 new listings priced over $2,000,000 in the last 60 days. There have been 119 closings over $2 million in the same period.
We had that spurt in pendings the previous week, but it cooled right back down this past week:
Week
New Listings
New Pendings
Total Pendings
May 6
113
67
364
May 13
86
48
362
May 20
132
55
357
May 27
100
78
375
Jun 3
109
55
365
The graduation season will provide some distractions over the next couple of weeks, but if rates stay in the high-3s, the selling season might stretch out a bit.
We had 132 new listings hit the MLS in the last week, which is the highest weekly total in over a year. Hopefully more listings will mean more sales!
Last year, it was during this time that the momentum picked up nicely, and the only time we had 400+ pendings in 2018. We also had the highest number of monthly closings for the year in June (299).
NSDCC Total Number of Pending Listings
Week
2018
2019
1st Week of April
346
331
2nd Week of April
336
342
3rd Week of April
331
341
4th Week of April
353
353
5th Week of April
362
367
1st Week of May
355
364
2nd Week of May
386
362
3rd Week of May
369
357
4th Week of May
387
?
1st Week of June
410
?
2nd Week of June
401
?
3rd Week of June
376
?
4th Week of June
358
?
This is as good as it’s going to get in 2019 – it’s prime time!
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