How to Go with the Flow of the San Pedro Real Estate Market — Tactics for Buyers

My Dirty Little Secrets for Buying a Home Series

Buying a home for the first time can be confusing. When I first decided to look for a home I didn’t know where to start and was always looking for information to guide me. That’s why the tips and strategies you’ll find in my 8-week series will set you on the right path based on what I learned through trail and error. It’s my own unique approach and a “behind the scenes” glimpse of what you should look out for and consider when starting your own search for a home.

Buying a home in the LA market requires an understanding of not only the seasonal shifts in market activity but also the weekly flow of the market. 

You’ll need to understand that there are two cycles – both a yearly one and weekly one when looking at homes. And you’ll need to be prepared and know what to expect for each one.

One simple way to explain these cycles is with a fruit you may buy at the grocery store metaphor: Usually oranges are best to buy in the winter while watermelon and strawberries are better to buy in the summer.

Same concept for buyers!

Just like picking up your favorite fruit in the grocery store, you start to know what to expect and know what time you need to be out there to get the best outcome.  It’s a huge lesson for buyers to know that they’ll need to adapt and be flexible.

Go With The Flow of the San Pedro real estate market

I can’t emphasize enough that you’ll be a successful and less stressed buyer if you know how to respond to the cyclical flow of the market — both seasonal and weekly.

My secret tips below will help you understand why timing can affect how you go about looking for a home:

The Weekly Inventory Cycle

Homes may tend to come on the market Thursday and Fridays. As the weekend approaches buyers have time to devote to their home search. This may change depending on the market so once again you have to go with the flow of the LA real estate market!

That means you have to get organized Friday afternoon or evening to know what homes you are going to see Saturday and/or Sunday. I like to be in contact with my clients throughout the week with homes that we see during the week so we can make sure nothing is missed during the weekend

Depending on the neighborhood you are looking in, homes will either go for “speed” or go for “the money.” 

What that means is, depending on where you are looking, sellers either tend to take offers quickly or they set deadlines after the weekend to give as many buyers a chance to see their home, hoping to get multiple offers and drive the price up.  

If you see a home you like online, reach out to your agent ( or me at james.daniel@kw.com 😉 )and flag the listing so your agent can reach out to the seller’s agent to see if you need to rush out to see it and go for speed, or if you can take your time and have a set deadline, typically for early the following week. 

There are exceptions to this rule, but typically, this is how the weekly cycle of new listings works.

Keep in mind that the inventory of homes for sale changes weekly, and depending on the time of year it can be drastic. So once you decide to seriously buy a home, you really need to be out there looking every weekend you can in order to see what has come on the market each and every week. And again, have a strategy in place for “speed” or “the money.”

The Yearly Inventory Cycle When Going With The Flow Of The San Pedro Real Estate Market

Here’s a breakdown of what to expect during the year:

• Inventory (the number of homes on the market) in the CA ( and Southern CA) market has a yearly cycle that looks like a bell curve with the low periods in January and December, and the height of the inventory peaking April through June.
• Suburban homes follow the school calendar and tend to become available in April/May/June. Not as many suburban homes come on the market at other times during the year.
• The overall market slows down in July and August but picks up right after Labor Day before slowing down again going into the holidays.

As you can see from the chart below found at https://www.redfin.com/state/California/housing-market 2023 stays true the the historical bullet point above of the market when it comes to when homes are sold.

What’s this all mean for you? 

Go with the flow!  If you are starting your search in November, December, or January in Southern California, more specifically the Los Angeles area, be prepared that there may not be as many homes to see as there would be in March, April, May or June. At the same time, sellers who list their home during the winter months probably need to sell their house quickly. You may get your asking price that is lower than what is listed, receive different kind of credits from the seller and might not have to compete with other buying offers. This was the case when I bought my home in 2018. We closed in November with myself being the only offer that had been presented. We also ended up coming in lower than asking but were strategic in how and why we did so. You can read more about this here in my blog called 7 Reasons Buying A Home During The Holidays May Be A Good Idea.

Purchasing a home during the spring and summer, traditionally considered peak real estate seasons, can present prons and cons for prospective buyers.

One of the main advantages is the favorable weather conditions, which make house hunting more pleasant and allow for a clearer inspection of properties. The vibrant colors of blooming flowers and lush landscapes can also enhance the appeal of homes, potentially influencing a buyer’s emotional connection to a property. Additionally, the spring and summer months often see an increase in the number of available listings, providing you as a buyer with a broader range of options. However, the higher demand during this season can lead to increased competition and potentially higher prices. Additionally, mortgage rates may fluctuate, affecting the overall affordability of a home purchase. It’s important to carefully weigh these factors when you are going with the flow of the market in the spring or summer.

That’s why you don’t want to get frustrated or give up on your dream to own a home if it’s simply timing that’s not on your side. 

There are exceptions to every rule, so if you want to know what to expect for your own home search, get in touch and I’ll help you through it all. It’s not one-size-fits-all and there are not hard rules, just trends to keep in mind. 

Let me know what you are looking for and where you would like to live. We can get you started on your search and help you fine tune it to your needs and budget. That way you’ll know what to expect and avoid any anxiety about your search. 

At the end of the day the best time to buy a house really depends on your situation. Stay calm and ride the wave of this great Los Angeles Market. If you have any questions at all feel free to reach out at anytime! James.Daniel@kw.com

Next up in my Dirty Little Secrets for Buying a Home series is a must-read – What NEVER to Do Before Buying a Home. These tips will save you a lot of grief!