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Are Home Prices Falling in Our Market?

Are Home Prices Falling in Our Market
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Last May, there were 361 fewer closed escrows and 238 fewer listings than what we saw in May 2019. Additionally, there were 1,041 total properties for sale in the San Fernando Valley—a decrease of over 20% compared to May 2019.

What we’re seeing now is the same thing I’ve talked about in previous videos: Sales are rising. From April to May, sales increased 70% across Southern California and 67% in the San Fernando Valley. Here in the North Valley, the 91326 ZIP code has 55 pending homes, Granada Hills has 61, and Chatsworth has 53. If a home is priced correctly, it should sell quickly right now. 

If you’re a seller, this is obviously great news. The average days on market for homes in the North Valley is 24 days, while homes in the entire San Fernando Valley average just 36 days. If you list now, you can take advantage of the fact that many other would-be sellers have decided to sit on the sidelines at this time. In other words, you’ll face less competition. In the 91326 ZIP code, there are usually between 80 and 90 homes for sale this time of year, but right now there are just over 60 available listings.

“As for the rest of 2020, we don’t expect the market to change much or start trending downward.”

If you’re thinking of purchasing a home, there is an influx of buyers flooding the market for a variety of reasons, and I recommend that you get off of the fence as well. Interest rates, for one thing, are historically low—a lot of our buyers are locking in rates as low as 3% (and some even lower). Also, since more and more people are working from home and no longer have to worry about a work commute, more buyers are moving to the suburbs here in the North Valley. This has increased competition and caused a spike in multiple-offer situations. Mortgage applications to purchase a home rose 4% last week from the previous week and were a remarkable 21% higher than a year ago, according to the Mortgage Bankers Association.

As for the rest of 2020, we don’t expect the market to change much or start trending downward, especially since interest rates are expected to stay the same.

As always, if you have any real estate questions or are thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’m happy to help.

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