Coronavirus Real Estate Market June 3, 2020 Update Number 4 – Ventura County is a Hot Market
As I have previously mentioned in past blogs, and in conversations with many of you over the last couple of months, the Real Estate market this spring has been active.
However, the Ventura County Real Estate market over the last three weeks or so, for lack of a better term, has been hot, sizzling, blistering, and any other adjective you can think of relating to fantastic. Therefore, what is driving this Ventura County Real Estate market in the midst of a pandemic and social and economic disarray?
First, the Feds, meaning the federal government (federal reserve) is pumping money into “the system” like never seen before. The Feds are stimulating the economy by buying up assets to shore up the balance sheet including mortgage backed securities, providing business owners grants/loans, stimulus checks, and most importantly keep interest rates at all time lows. As a result, buyers with a couple of bucks in their pocket, decent employment, and respectable credit can qualify for a mortgage in the three percent range.
Second, the trend is reversing, and the “burbs” are back. Over the last ten or so years, the Los Angeles city center area including the valley and the westside have seen rapid price increases and significant demand for their real estate as people flocked to live within various parts of Los Angeles to be close to the entertainment and tech industries.
However, we have seen over the last month in particular a recent surge of people from the Los Angeles area wanting to move to the pristine open areas of Ventura County as a result of covid-19. This recent phenomenon has been spurred by potential buyers looking for home office spaces, larger houses, less people, and better prices. Some companies have concluded that their workers can function in a home office in lieu of their corporate offices. Consequently, maybe the trend is reversing back to the “burbs” from the city center.
Now the moment you have all been waiting for (drumroll please), the raw data to support my above rationale from The Ventura County MLS May 2020:
New Listings: 535
Active Under Contract: 296
Now let’s compare May 2020 to May of 2019 from our local MLS in Ventura County, below is the data from May 2019:
New Listings: 1123
Active Under Contract: 702
As we can see, the activity level has decreased significantly. In particular, the number of new listings in May 2019 was 1123, compared to 535 new listings in May 2020. However, that number is to expected as Covid-19 has reduced the number of sellers for social distancing reasons. But the big takeaway from the above data is the differential of new listings in relationship to closed listings which effects inventory. In May of 2019 there were 1123 new listings and 761 closed listings for a net difference of + 362 and in May 2020 there were 535 new listings and 501 closed listings for a net difference of + 34. So what does all that mean? There are significantly fewer properties on the market. Consequently, with low rates and a large pool of buyers, properties go quickly.
Some of my buyers in March and April were hoping for dramatic price decreases due to covid-19. However, as I have previously mentioned, Real Estate typically trails the economy and in the case with the Feds pumping the system full of money, pricing for Real Estate at least in Ventura County continues to creep at an upward trend. Consequently, as I have been saying all along, if you need to buy then buy if you need to sell then sell. Timing the market in any asset class is nearly impossible. Hence, if it makes sense go for it.
About Dave Crowell, Dave Crowell is the Broker/Owner of American Dream Realty in Camarillo Ca and a top producing Camarillo Real Estate Agent, DRE 01845970. For more information feel free to contact Dave at 805-300-3345 or visit my website at www.mycamarilloproperties.com for seller and buyer tools. Also, for a valuation report on your home go to:
American Dream Realty
DRE Lic: 01845970