According to the LA times, the SoCal housing market is cooling off, but is it easier to buy a house right now? Well, let’s take a closer look.
Before all you buyers that have been sitting on the sidelines waiting to buy a house, get excited, I'm sorry to break it to you. that's not going to happen. My prediction for 2022 is that we're still going to see growth and a strong market.
According to this Los Angeles Times article, they're telling us that in the Southern California region the number of sales declined by 6.6% in October, which was the first drop since June of 2020, which on paper, that seems like a big deal.
In all honestly, you guys that's click bait. When you think about what's going on, there's several things at play here.
You have buyers who have been missing out repeatedly, so they are totally burnt out.
You have sellers who think their house is worth a gazillion dollars. For the first time, in a while, we're seeing some price drops. These are called overzealous sellers; these are sellers who literally thought their house was worth a lot more money and they realized very quickly that their assumption was incorrect, so they dropped their price. That's not the market cooling, that's just some sellers who are misinformed.
You have low supply and high demand in certain neighborhoods where homes have not come up for sale in a long time. When they do, they're move-in ready condition and everybody wants them. For example, let's say you have a house that's listed for $1.1 million. It sells for $1.3 million; that's $200 grand over. Now, let's say 30 days later, a very similar house goes on the market. Is it going to be listed at $1.1? No, it's going to be listed at $1.3. So, you are not going to see a $200,000, growth in that neighborhood; it's going to appear that the numbers kind of stabled off.
So, is there a drop in the market? No, again, this is one person's humble opinion, but my prediction for 2022 is that we're still going to see a strong market. That's what a lot of the economists are predicting. I still think that because we have low supply, which is not a lot of houses for sale and a lot of people who are qualified and want to take advantage of low interest rates and have that money waiting that there still is going to be fierce competition. Maybe we won't see 20 plus offers, but you're still going to see maybe four to seven offers, which is still a bidding war.
If you're a seller, you're a little excited. If you are thinking of selling in 2022, you know, your girl call me.
If you have any questions or you want to start a conversation, let’s talk
Don’t forget to catch up on my weekly show, Taya’s 2 Cents
, where share my two cents on different real estate topics from buying and selling real estate, owning a home and more.