Today we are going to give you a much-awaited update on what is happening in the Porter Ranch and San Fernando Valley real estate markets.
As has been the case for quite some time, inventory is low. Supply in the 91326 ZIP code is sitting at about 69 homes out of 11,700 single family units. That translates to under a two months’ supply of inventory across Porter Ranch and most of the San Fernando Valley
To have an even market, you need about 7,000 homes in the entire San Fernando Valley. Then neither the seller nor the buyer has a distinct advantage.
In February of this year we only had 958 total listings in the entire San Fernando Valley, and only about 45 of those were in the 91326 ZIP code. As a result, we are still seeing multiple offers on well-priced homes.
We saw a new record of $700,000 being made in February for the median price point for a home in the San Fernando Valley. That’s up from $675,000 back in November of 2017. Meanwhile, the average price across all of Los Angeles County sits at $585,000.
Price continues to rise despite the 0.5% rise in interest rates we saw back in January. This interest rate hike made many people reflect on whether to buy. Many of these people will likely be priced out because of the future interest rate hikes that we are expecting later this year.
Quick movement of homes staying on the market for 32 days in the 91326 ZIP code is consistent for the majority of the San Fernando Valley as well. Nearly half the properties are experiencing multiple offer situations. If the homes are priced right, you have way more demand than you have supply.
During the Great Recession, many people found good deals when the interest rates were under 4%, and they are now reluctant to sell their homes even though they are buying new properties. The inventory shortage being created is what is really fueling the increasing prices.
If you have any questions about the current market, please feel free to call me or email. I look forward to speaking with you.
