June 2020 Solano County Housing Report

Mortgage Rates Hit Record Lows for Three Consecutive Weeks
July 15, 2020
Does Your Home Have What Buyers Are Looking For?
July 21, 2020

The chart below shows the overall market statistics from April 2019 through June 20, 2020 Light green represents listing inventory for each month. Dark green shows all sold properties for the same corresponding month and the Redline shows pending sales. You can see that since the pandemic the number of new listings has dropped significantly while our Pending sales are skyrocketing. We expect July to a serious bounce-back month for sold properties as the pending turn to sell.

When tracking price per square foot, it is important to keep in mind many factors go into a home’s value. You can’t simply take the average square foot price and multiple this by your home size and get a real value. Often smaller homes have a higher price per sq. ft. than larger homes and land also factors into the value. Your lot size has a lot to do with the value of your home as does condition, upgrades, remodels etc.

The average Day On market also referred to as DOM in the industry has remained strong throughout this pandemic and continues to show no sign of slowing down.

This chart shows you the disparity between what homes get listed for and what homes sell for. It is a little misleading in that you might jump to conclude that homes sell for a lot less than what they are listed for. NOT TRUE. Right now in Solano County, the average home is selling within 30 days for 99% to 103% of its listed price. Homes that remain on the market for more than 30 days start to lose value and sell for as much as 3 to 5% less. This is a good reason to never over list your home.

This might be the scariest number out of all the slides. Our inventory has shrunk considerably. Albeit even a year ago we had inventory issues. Inventory is the very reason pricing remains so strong. With interest rates at all-time low buyers keep buying because it makes absolute sense to buy now and leverage the low-interest rate.  From May 20, 2020, through June 20, 2020 inventory dropped to 0.9 months supply. That is a little over three weeks. This means if no other home got listed for sale we would run out of properties to sell within four weeks.

In conclusion what we see happening is sellers have been holding back from selling their homes for 90 days. Since the Pandemic started. We see this by the amount of homes in the MLS that have been withdrawn for sale, or temporarily off market. We can also see this in our inventory numbers and in the first slide we saw how low the new listing numbers have been. 50% lower than the same period a year ago. We do think this will change and when it does, we think we will see a substantial uptick in homes coming to market for sale. This could very well put a strain on the DOM and cause depreciation by as much as 5% to 15% in those homes listed for sale.

Imagine not just one home in your neighborhood for sale but 5, 6 or even more. With buyers having so many options sellers will have to lower prices to compete. This is probably the most important reason to sell now! Get ahead of the curve and beat other sellers to the market. As the news regarding how strong pending sales are turns to how strong sold home data is, sellers will begin to take-action and all those listings waiting in the weeds will come to market.  Any depreciation that comes as a result of this pandemic should be short lived. 6 months to 2 years max.

As the saying goes with us REALTORS. We know what your home will sell for today, but we can never predict what the value will be in a year… Let’s chat!

Schedule An Introduction

Good communication and trust is key to any great relationship, and real estate is no different. We take time to listen and understand what success means to you so you can feel confident about the decisions you make – saving you time and money, and helping you avoid unnecessary stress. Let us get to know you and your real estate needs – schedule an introduction today. Call, email or fill out the online form.

Call: 707.580.3499
Email: concierge@remaxelitepartners.com

Making A Difference 

+16000 Homes Sold in 2019    682000  Donated to Charity

The Elite Partners epitomize integrity, energy, hard work, and service throughout each and every transaction they have. The Partners have been responsible for over $1 Billion in sales over the last 15 years and have ranked in the top ten worldwide within RE/MAX. Whether you’re ready to move into your first home or move on to the next one, The Elite Partners are with you at every important moment along the way.

We see home as more than a house, so we approach real estate as more than a transaction. It’s how we build relationships – by making people feel happy and confident about the biggest investment of their lives. This is more than our profession; it’s our passion because our family never forgets how much home truly means to you and your family. So when you’re ready for your next moment or your next adventure, call The Elite Team. We’ll help you get there.


-The Elite Partners Powered by RE/MAX Gold
Broker DRE LIC# 01215931

We would love to be your REALTORS®!

Leave a Reply

Your email address will not be published. Required fields are marked *