Inventory remains the biggest obstacle and shows as a big red flag for the next few months. As of today, we are sitting with 309 homes listed in the month of August 2020. This is a 13.9% reduction in inventory from July 2020 and a 56.8% reduction from the same period one year ago. Homes continue to sell at an all-time record pace. We don't have time in the last few decades that homes sold as quickly as they are right now. With 449 homes sold in August 2020 which is down 17.3% from July 2020 and 17.8% from a year ago.
It is the Pending statistics that has us concerned. 576 homes went pending in August which is an increase of 11.0% from July and a 20.3% increase from the same period one year ago. This puts our inventory level at 3 weeks (.07 Month). Theoretically, we would have no more homes to sell if no new listings came on the market in three weeks. To suggest we are desperate for inventory would be an understatement.
The average cost per square foot is $284 which is an increase of .07% from July 2020 and a 5.6% increase from a year ago. The separation from a home's average list price of $613,000 which is down .05% from July 2020 and a 2.2% increase from the same period one year ago. VS. homes sold a price of $527,000 which is also up 1.5% month over month and a wapping 10.9% from a year ago. The majority of this appreciation has come in the last 6 months. We started slowly when the pandemic hit but homes are selling fast and higher and higher every day.
If you purchased a home anywhere between 2012 and up to a year ago you are most likely sitting pretty with a ton of equity. In many cases, homes have doubled in value. One has to ask the question how much is too much? The problem even if you wanted to sell and cash out where would you go. Aside from leaving the state (Which by the way many sellers are), there remain very little options for sellers. Rental properties are scarce and as we have stated in this article inventory is very scarce.
The future is perhaps scary at best...
Below we have broken down a more granular look at each of the markets in Solano. Simply click on the zip code link to see a full picture and indepth live market review.