This report contains a snapshot of recent activity through the end of the last month in the area(s) of the market that may be of interest to you. The Market Trends data is obtained from Multiple Listing Service, and may reflect slight changes as the data is updated throughout the current month.
All reports presented are based on data supplied by the SoCal, Sandicor, MRMLS, and DARMLS or their MLSs. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed. Report Courtesy of Altos Research, Inc. and First American Title Company.
Active Inventory Any property that has been submitted to the Multiple Listing Service (MLS) and is available for purchase is included in the Active Inventory calculation. If, in a particular market area, the number is going up, it means that buyers have more options when choosing a home. In practical terms, the buyer has more power when negotiating a transaction. On the other hand, when this number is decreasing and there are fewer choices, the tables turn, the sellers have more control of the negotiation process and you begin to see multiple offers being made on properties. When the inventory numbers reach very low levels, multiple offers on the property are usually the norm.
Any property that is not submitted to the MLS, such as most 'For Sale by Owners', will not be reflected in this report.
Average Sales Price The Average Sales Price is calculated by analyzing the prices of the properties sold in a particular market area within a 30 day period. The average sales price should not be taken as an absolute "fair market value." There are many factors, i.e.: square footage, year built, number of bedrooms and baths, etc., that will play into an actual appraisal of the home. It is, however, an indicator of conditions in a given market area. As with Active Inventory, fluctuations in the numbers will benefit either the buyer or the seller. Higher average sales prices will often coincide with lower inventory, thus creating more demand for the property. When the average sales price starts to , the inventory will often grow, thus giving buyers greater leverage when negotiating a transaction. Days on Market The period of time between the listing of a property/submission to the MLS for sale and the property being sold or taken off the market is considered Days on Market.
The Days on Market numbers should be used in conjunction with the Active Inventory and Average Sales Price numbers in order to make an informed decision regarding what might be happening in the market.
A low number of Days on Market indicates that the market is very active because either the prices are very desirable or the inventory levels are very low and the demand for the property is strong. In these circumstances, the average sales price would tend to rise.
High inventory and decreasing average sales price will typically be accompanied by a larger Days on Market number.
Pending Inventory The Pending Inventory Properties consists of properties that are in escrow. Because the Pending Inventory reflects the current pipeline of "transactions-in-progress", it may give additional insight into the level of market activity, compared to looking only at Active Inventory and Total Sales and it can help determine when the best time to buy or sell is. Total Sales All properties that close escrow are considered sold and are reflected as Total Sales. Because these properties have actually closed escrow, this number shows the activity in a given area over a period of time, and it is, therefore, the true history of a market area.
A higher number in this category reflects a desirable change in that market, perhaps lower average sales prices or lower prices per property square footage, or perhaps the addition of a new facility, like a college or shopping/entertainment center in the area. A lower number can indicate higher prices or less desirable conditions.