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Tight real estate market is persistent and it will only get worse for Santa Clarita home buyers · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: May 19th, 2023, Tight Supply takes the spring out of existing home sales.
• 0:06
  SPEAKER_00: Existing home sales fell 3.4% from March to April to a 4.28 million unit annualized pace per the National Association of Realtors or NAR.
• 0:17
  SPEAKER_00: Sales were also 23.2% lower than they were in April of last year.
• 0:22
  SPEAKER_00: This report measures closings on existing homes, which represent about 90% of the market, making it a critical gauge for taking the pulse of the housing sector.
• 0:32
  SPEAKER_00: What's the bottom line?
• 0:34
  SPEAKER_00: Tight supply is the key reason for the decline in sales around the country.
• 0:38
  SPEAKER_00: While total housing inventory increased 7.2% from March to 1.04 million homes available at the end of April, it remains well below normal with just 2.9 months of supply available at the current sales pace.
• 0:54
  SPEAKER_00: In addition, multiple data points suggest that demand remains strong.
• 0:58
  SPEAKER_00: Homes stayed on the market an average of 22 days, down sharply from 29 days in March.
• 1:04
  SPEAKER_00: Plus 73% of homes sold in April were on the market for less than a month, which is up from 65% and shows homes are selling quickly when they're priced correctly.
• 1:14
  SPEAKER_00: Meanwhile, investors accounted for 70% of the transactions last month, making up roughly one out of every six deals.
• 1:22
  SPEAKER_00: Clearly, investors are seeing the opportunities in housing right now.
• 1:26
  SPEAKER_00: Also of note, the median existing home price fell 1.7% to$388,800 from a year earlier.
• 1:35
  SPEAKER_00: However, this is not the same as a decline in home prices as some media reports implied.
• 1:41
  SPEAKER_00: The median home price simply means half the homes sold were above that price and half were below it.
• 1:48
  SPEAKER_00: And this figure can be skewed by a mix of sales amongst lower priced and higher priced homes.
• 1:55
  SPEAKER_00: Actual appreciation numbers are higher, not lower, on a year over year basis and are showing acceleration, according to key reports from Case Schiller, Core Logic, and the Federal Housing Finance Agency.