Written by Jon Long on July 8th, 2020
Right now, we’re seeing a little bit of both, suggesting the market is balancing out. Brea homes for sale aren’t selling for much under their asking price. In fact, most of them are getting 97% or 98% of their asking price. In some cases, we’re even seeing multiple offers on listings.
April is the month that the real estate market tends to pick up, and that’s definitely the case this year. With the way the weather had been—rainy, cold, and dreary—it didn’t seem like anybody wanted to list their Brea homes or go out and take a look at properties, but now activity is warming back up.
Just a couple of months ago, we’d typically get three to five people coming through an open house. However, just last weekend, we saw 20 or 30 people come through an open house. There has definitely been a significant increase in traffic throughout the Brea housing market.
As I mentioned, the market is beginning to balance itself out, skewing more toward a buyer’s market. But as the real estate season gets underway, we’ll see it shift back a little closer to a seller’s market. Overall, the market is good and healthy.
So what does the current housing inventory look like?
Back in November and December, inventory dropped a good amount, but now that the real estate season is picking up, we’re definitely seeing homes for sale in Brea, CA begin to rise.
We have buyers who, just a couple months ago, had pretty much seen everything on the market; a week or two would go by where nothing new came on the market. Now, it seems like two or three homes in their price range that match their criteria are appearing on the market every week. We went from having 50 homes on the Brea market around December and January to having 82 homes on the market today—and that number continues to rise. Compair it to some larger cities, for example, you will see more Fullerton homes for sale and more Yorba Linda homes for sale than you will in the Brea real estate market.
As inventory rises, so does buyer demand for Brea homes. Over the past few weeks, we saw interest rates go from 4% to just below 4%, which was fantastic for those who thought they’d never see those rates again. Additionally, a few factors overseas are causing people to invest their money in the U.S. People are investing in bonds because the stock market is pretty high; whenever people invest in bonds like they have been, it drives the rates down.
Now they’re creeping back up a little to 4.375%, which is still a great rate, but even a small difference can have a big impact on buyers’ purchasing power. As long as rates stay nice and low, homebuyers should have a great time in our market.
All in all, not much has changed in our market since last year. Buyers will enjoy our low interest rates, and sellers will profit from our great home values.
If you have any questions about the market, don’t hesitate to reach out to me. I’d love to speak with you.