It’s All About Supply and Demand

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Filed under: Market Comentary

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The market is showing amazing resilience – particularly in the purchase market and the things that are happening here in the Temecula area and Southwest Riverside County. I know that there are differing results across the country, with other pockets of areas that are experiencing the same effect.

It truly is about supply and demand. There are literally more buyers than sellers; more supply than demand. That is driving the market right now.

Current Market Conditions in Our Area

Franklin put out a market report for Southwest Riverside County, and it’s interesting to see the numbers. When we look at daily inventory for year over year, comparing June last year to our current numbers – the current inventory is literally half compared to the same time last year.

What I’m hearing from every real estate agent out there is that activity on the listings is through the roof, with multiple offers on every property. Things are flying off the market. Days on market is down because homes are moving so quickly.

Through this window of time, we are seeing dollars per square foot go up. This shift in the industry is surprising to me – I wouldn’t have guessed that dollars per square foot would increase because of this pandemic.

Take Advantage of Low Interest Rates

It’s definitely fueled by amazingly low interest rates. Anyone in a position to buy real estate can see that it would be a big mistake to miss out on the rock-bottom interest rates available right now. If it’s on your radar to buy any time in the next 6 – 12 months, then now is a great time to jump in (even though it seems counter-intuitive).

If you or anyone you know is sitting on the sidelines of the real estate market, then now is the time to make your move. Maybe you are ready to move up or downsize – let’s figure out how you can maximize the equity available in this strong real estate market. It’s a great time to get your house on the market right now! Reach out if you have questions about your options.

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