Let’s take a look at the trends in the North and South San Fernando Valley for the last 3 months. Looking at just single family home sales in these markets, I look for trends in price and volume. While each neighborhood will have its own variables that effect the price, with this analysis I am sharing general trends in our local markets.
Summer is traditionally a very busy time for real estate. As the school year comes to a close, many families look at this as a good time to make a move and we see an increase in inventory and volume. Interest rates have jumped since the beginning of the year, and rising inflation are all taking a toll on the home buyer. For the past few years we have seen homes selling under 10 days with multiple offers, now they are staying on the market a bit longer. This will take an adjustment for the mindset of sellers as we return to a more traditional, stable market. The current market is very complex: homes that are “turn key” are going to have more interest than those that need a lot of work. In the North Valley, we have seen a sharp decline in the number of closed escrows. They are down almost 25% from June to July. As some buyers are taking a step back from purchasing, the result has been an increase in inventory and homes staying on the market longer. We will probably see more price adjustments, as we settle in to this more “normal” market. We have a similar situation in the South Valley, with a 28% decrease in closed escrows from June to July. If homes are priced properly, they will have a better chance at spending less time on the market. As both buyers and sellers adjust, we need to remember to have some patience and that there are still some great deals out there to be found.
Ultimately, when it comes to price, it will always come down to area sales and what others are willing to pay for the same house. If you are interested in learning more about your options or discuss this in more detail, please feel free to call or email.