SoCal Quarterly Market (Micro) Insights Report: Q1 2022
April 21, 2022 | Source: Compass California Real Estate Blog
It is our pleasure to bring you the Compass SoCal Q1 2022 Market Report.
The Southern California market continued its trajectory of double-digit price increases from the Central Coast to the South Bay. Single-family homes in Santa Barbara saw a median sales price increase of 23 percent to $2.3 million in the first quarter of 2022. The median sales price for condos in Manhattan Beach rose by 64 percent to $2.7 million. Historic low inventory levels across the region caused home sales to falter in almost every market. Even potential sellers with significant equity gains chose not to sell right now. Though inventory constraints did not stop motivated buyers from hoping to take advantage of lower interest rates before they increased, “Where will I go?” remained the sentiment. Buyers were out in full force making multiple offers and paying above asking price to secure the “winning bid.”
Buyers moved increasingly quickly, reducing days on market dramatically in some areas from months to weeks. Malibu condo buyers cut days on market from 93 days in Q1 2021 to only 11 days. In Brentwood the brisk demand for single-family homes reduced days on market from 64 days to 30 days. Cash offers were common and often that is what it took to write a competitive contract. Some buyers waived contingencies including inspections and financing. In some highly competitive markets, sellers were even able to stay in their home at no cost after escrow closed until they could move without leasing it back from the buyers. The Compass community of agents across Southern California continues to guide buyers and sellers through challenging times.