Time to Learn Some Real Estate Yoga

Well, hello, it's time to practice some real estate yoga. Let's go ahead and get started. My name is Stephen Meade. And this is the Southern California entry level first time buyer housing market update. My broker just domicile real estate where we are on a mission to have California's renters become homeowners. And today we're going to talk about something interesting because we're entering a little bit of a different phase. In our market, what we really have, especially if you're an entry level buyer, is there are two markets going on? What am I talking about?

The first market, if you are the person who wants something specific, this is true for a lot of our architectural buyers that we have, they want something particular, this is the market where you are to look and search hard. And when you find what you're looking for, you're going to have to fight for it really hard. However, the second market is for those of you that are looking for a deal. And if you're looking for a deal, the name of the game is flexibility. And that's why you need to become a real estate yoga master, a buyers who have the flexibility can really take advantage of some of the opportunities that we're seeing.

Because we're in a market that is a little bit more favorable to buyers than it was last year. Let's go ahead and get started. And I'm going to show you exactly what I am talking about. Okay, so coming back here to our prices. Remember, this is taking a look back in the rearview mirror, these prices are pretty much flat, really, for the most part, we see some kind of variations here in our condo market, or single failure market had that big run up earlier in the spring. And now it's been kind of a more subtle rise that's really kind of flattening out. This is about typical for what we see as we go into the summer months. Now I'm gonna give you a caveat, as I talk about this, that's really important.

That caveat is in the entry level price segment, what you're going to find is that this market is very, very reactive to interest rates, interest rates go up, buyers pull back, interest rates go down, buyers jump in. So we're at a point where those interest rates are, you know, have gone up the last 10 days. And really that's kind of a boon for the buyers out there. But if you were waiting for at some point in the fall, maybe for the Fed to start dropping rates, I think you're gonna see a much more competitive market. We look at our total monthly payment that is actually down a little bit here to $6,600 on that entry level single family home and 5000 on our entry level, condo.

And what you know, what does it actually take to buy one of these houses with with just 5% down including everything right? What do you need to qualify? In your household? If you have no other debts? On the condo front? We're looking at around $125,000 By the way, where were we last year? $111,000. So, you know, if you were last year waiting, saying I want to save up more money? You know, the question is did you save up enough to make up that difference? Probably not. And then we're looking right around 160 $162,000 versus 145. For our entry level single family home last year. We look at our absorption rate, right?

This is kind of our quick and dirty. How do we match up the number of homes coming on the market versus the number of homes that are going into escrow, we see that those numbers have gotten a little bit more competitive from last week to this week, jumping back over or hitting 80% for them tradable single family home and being at 65% for that entry level condo. We look at total inventory. I think this one is really kind of interesting to me. We've seen a really big rise in inventory of these entry level homes, especially those entry level single family homes.

However, it's really starting to flatten out right, that springtime bump in inventory is starting to ease off we're seeing it starting to ease off a little bit on the condos too but not quite as fast. Where are we versus last year? You know, we're probably here around 16 1700 entry level single family homes versus 1400. So definitely still an improvement versus where we were at last year. Maybe not quite the improvement a lot of people have been hoping for in the entry level segment. If we look at are still active over 14 days, remember higher means less competitive. We've seen a little bit of a jump last two weeks. Great news for buyers on that front. Again, this is the tale of two markets, the first market If you're looking for something particular that happens to be desirable, you're going to face a lot of competition. If you're flexible, you're going to find you have a lot of interesting options out there, that you may be able to take advantage of.

And finally, if we're going to take a look at our week supply of homes, we see for our condos here, this has jumped to almost 10 weeks really, this is kind of a pretty big number on the condo front, and a much more subtle rise here on that entry level single family home front. Not unusual, we find if there's ever softness in the market, the condo relative inventory jumps quite a bit more than the single family you can kind of see that happen throughout kind of on this history. Overall, where we have just under six weeks of inventory and single family homes, that's really not a lot. But it is more than last week, which is definitely a boon if you're a buyer out there looking into those entry level single family homes. And yeah, that's all I have for you this week.

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