The housing market just dramatically improved as the inventory plunged and demand increased.
Sudden Improvement: The Expected Market Time just dropped by 8%.
Was it the nanny? How about the next-door neighbor? The uncle or family friend? Classic “whodunit” movies are intentionally designed to keep the audience on the edge of their seats attempting to figure out the identity of which character is behind the mystery. The writers keep you guessing as you anxiously shovel handfuls of movie popcorn and wash it down with a Classic Coke. Finally, the plot twist is revealed. You may be surprised because you missed all the signs.
In the same way, housing has been slowly evolving, flashing signs of change regardless of all the chatter that housing is about to collapse. The twist? In the past two weeks, the market improved significantly, and the Expected Market Time dropped to levels not seen since April, the height of the Spring Market.
This did not come out of left field. 2019 has been characterized by the gradual evolution away from the housing slowdown at the end of 2018 back to a much stronger Southern California housing market. Everyone stopped talking about the lack of homes on the market as demand came to a crawl. It’s basic supply and demand. When the supply of homes increases and demand falls, housing tilts towards the buyer’s favor. That is precisely what occurred from November 2018 through January of this year. When the supply of homes consistently drops as demand remains reliably strong, housing tilts in the seller’s direction. That is the story line since July.