Many of my clients have been asking me, Hey William, how is Covid19 affecting the real estate market in Rancho Cucamonga? So I thought I would bring you a video showing you the stats and numbers and see where we are today and where we are headed.
Let’s look at the numbers of Active listings from January of 2020. So, back in January 2020, we had 286 homes that were active in the marketplace, and in February, 306 homes active, and in March, 300 homes active in the marketplace, and in April, 330 homes active in the marketplace. What does it mean? I believe about 430 homes are needed to be in the market place as active to keep the balance between the buyers and sellers in a healthy situation, so being at 330 homes Active means that we’re short on inventory.
Let’s dive in and take a look at pending homes in Rancho Cucamonga since January 2020.
In January we had 120 homes that were pending, meaning that sellers have found the buyers and went into escrow.
In February, 137 homes were pending and in March 117 homes were pending
In April 69 homes went pending. I do believe, for your reference point, 140 homes are average and healthy, so it’s about half of that, so Covid19 has actually affected, in a way, the real estate market in Rancho Cucamonga.
Now let’s take a look at closed sales from January of 2020, we had 120 homes actually closed, meaning that new buyers have registered their name with the county recorder’s office and they have declared the home as their own home. So back in January 120 and in February 108 homes closed and in March 150 homes closed and in April 111 homes closed, now these numbers don’t seem to be that bad at all.
Let’s predict what is going to happen in the future.
There are three very important elements that I take very seriously to predict the market which is Days On the Market (DOM), Months of Supply, and Price Per Square Foot.
Let’s take a look at Days On the Market in January 2020. It took 27 days on average to find a buyer, and in February 2020, it took 27 days on average to find a buyer, and in April 2020, 12 days to find the right buyer.
Now, I do believe in 21 days, personally. Because if the property doesn’t sell within 21 days, it is a problem. If we look at the December 2019 numbers, we were at 37 days, and I can see as high as 46 days on the market in January 2019. So looking at that, selling a house in 12 days in April 2020 is very fast.
So by looking at the days on the market, the market really is doing great! Of course, it is because there is low inventory out there; it also means that there are serious buyers out there even during the Covid19 pandemic.
Now let’s take another look at Months of Supply.
In January 2020, we had 2 months of supply. As a reference point, I would like to tell you in Rancho Cucamonga that if months of supply are up to five months, we can consider it a seller’s market and beyond more than 5 months, then I could call that a buyers market. So, in January, we had 2 months of supply, definitely the seller’s market.
In February, 2.1 months of supply, the same thing, it’s a seller’s market.
In April 2.5 months of supply, we are at a seller’s market; once again, we see very low inventory counts, things are selling, and buyers are out there.
Let’s now take a look at Price Per Square Foot data,
In January of 2020, the price per square foot averages at $284 per square foot
In February 2020 $288 per square foot and it’s going up.
In March 2020 $300 per square foot and
In April 2020 $313 per square foot.
Now, what does it mean, the buyers are agreeing to the seller’s asking price and there might be a price bidding going, possibly. The Prices Per Square Foor are going up, of course, we’re looking at all price ranges here. It’s different by small, mid and large homes, for example, if we check on homes that are $1,000,000 and up it changes a little bit which I’d like to cover on a separate video. By looking at all price ranges, is showing the price per square foot actually is going up.
Now let’s take a look at the median percent of the original price received, meaning that how much are the buyers willing to pay compared to what sellers are asking for in percentage,
In January of 2020, buyers were willing to pay 98.8% of what sellers are asking and their pricing, and in February 2020 99% and look at this, March 2020 100 % and in April 100%, Boom!
Looking at these numbers to answer your question, ‘Hey William, is the real estate market crashing in Rancho Cucamonga?’ I don’t see that happening at this moment. No one knows what will happen in the future, but there definitely are serious buyers who need to find their homes so I wouldn’t say that I am seeing a market that’s crashing. Actually, the market is pretty good as of the first week of May 2020.
Next time I’m going to be dissecting different ZIP codes in Rancho Cucamonga and also down to small communities, where I specialize in.
I wish you a wonderful day and stay safe during this pandemic period.