The Pulse of the Market

Sales activity is still pretty strong. Well-priced or desirable properties are still selling quickly. Inventory levels are still increasing slowly due to new listings being snapped up by buyers as soon as they hit the market. So the total number of active listings counts haven’t changed much. If you look at the monthly charts on my website you’ll see the actual figures for the Number of Active Listings, Number of New Listings and the Number of Sales. The Closed Sales Average Days on Market has remained the same in most areas except Los Angeles County, where we’ve seen the Days on Market increase since the first of 2022. Last week’s stat was at 72 days.

What to Expect:
More foreclosures coming? With the foreclosure moratorium ending in 2021 and a wave of homeowners coming out of forbearance, there will be more foreclosures and distressed properties this year. Not just homeowners will be affected. This should also cause some distress for owners of multifamily properties. It will still take a while for properties to cycle through the notice of default and trustee sale period. We probably won’t see foreclosures anywhere near where they were during the Great Recession but there will be a slight increase. As you can see by this chart, homeowners have a lot of tappable equity in their homes. Tappable equity is defined as the amount available to homeowners before reaching a maximum 80% combined loan-to-value ratio.