In January of 2019, our entire San Fernando Valley saw only 760 closings. This is down by approximately 150 closings year over year. So what’s the reason behind this change, and what does it mean for our market?
Ultimately, it comes down to interest rates. Rates were previously hovering in the mid-5% range, which discouraged buyers from making a move. But things have begun to change. Now, rates have dropped to around 4.6% on average, leaving buyers feeling much more comfortable with entering the market.
Even in light of recent inclement weather, buyers are beginning to come out in droves. This gives sellers a bit more leverage than they once had, but it doesn’t mean that they can do whatever they please. Listings still need to be priced well and in good condition to succeed in the market.
Many buyers don’t have the time or money to remodel. They want homes that are move-in ready. Homes that fit this standard are selling relatively quickly, with today’s properties spending an average of 47 days on the market.
All in all, we’ve got a very healthy market on our hands. Buyers and sellers have ample opportunity to make their real estate dreams come true.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.
