Let’s talk about arrows: arrows up and arrows down. CRMLS released year over year statistics on local counties dating back to 2019. Over the past 4 years, in all 4 counties  — Riverside, Orange, San Bernardino, and Los Angeles — the Median Sales Price is up. Each year, from 2019 to 2020 to 2021 to 2022, the typical home has become more expensive to purchase.

As a REALTOR, I keep tabs on the daily changes in the real estate market. When I search in CRMLS (one of the biggest MLSs) I can see what properties are new, which properties went into escrow, and what sold. For all of these properties, I also get a RED down arrow and a GREEN up arrow depending on whether the price was cut or the price was increased. If the property sold for over list price, then there is the green up error. If it sold for less than list price or the price was reduced, then there is the red down arrow.

When you are pricing your home right now, it is crucial to look at the trends of the local market. As you know from real estate and mortgage headlines, the rising mortgage interest rates have pushed some buyers out of the market for financial reasons and other buyers have decided to wait because the monthly payment is higher than when they first got preapproved.

A catastrophic bursting of the housing bubble is unlikely, but prices may recalibrate as home buyers are not quite as risky.

“We know the system is logjammed, but we don’t know how far back the logjam goes…In my opinion, it will take a couple months for all this to shake out,” Devyn Bachman, vice president of research at John Burns Real Estate Consulting*. This quote does a great job of painting the picture of how we have been so depleted of inventory that anything is selling. At a certain point though, do we run out of the backlog of buyers and reach a market that doesn’t have 50 buyers for every house and now has 5?

If you are thinking of selling, let’s talk today, not next month about the plan. You can’t predict the future, but you can make plans for the future. Let’s make a plan for you to buy or sell your home and accomplish your real estate goals.

Source: CRMLS Stats

This content is not the product of the National Association of REALTORS®, and may not reflect NAR's viewpoint or position on these topics and NAR does not verify the accuracy of the content.