Constrained 2023 Inventory
The high mortgage rate environment has prevented many homeowners from selling their homes, and the trend has only deepened this year.
From January through April, there were 46% fewer sellers than the average before COVID, more than 6,500 missing FOR-SALE signs.
In the spring of 2020, life changed for everyone. Public schools, private schools, daycare, universities, dine-in restaurants, sporting events, organized sports, concerts, movie theaters, trips to the mall, amusement parks, public pools, beaches, neighborhood parks, and travel were all put on hold. The COVID “stay at home” order affected nearly every aspect of daily life, including real estate.
The California governor ordered the lockdown on March 19th. The initial shock of a worldwide pandemic not only deterred buyers from purchasing but also inhibited plenty of homeowners from selling their homes as well. In March, there were 25% fewer sellers than the 3-year average before the pandemic (2017 to 2019) in Orange County. In April, it rose to 49%. It then dropped to 24% fewer in May and 11% less in June. By July, more sellers came on the market than the 3-year average. There were 4,389 missing sellers from March through June, 28% less.
Excerpt taken from an article by Steven Thomas.
