Where’s our market going as we finish out September? As always, we look to the leading indicators to answer this question.
First, the number of new listings on the market has dropped 14% since June. Specifically, there were 86 properties for sale at the end of June in the 91326 ZIP code, but there’s only 50 available now. During that same time, our months of supply in the San Fernando Valley dropped from 2.2 months to just 1.8.
In other words, inventory is quite low. On the flip side, pending sales have increased 14%. One of the primary reasons we’re in this situation is low interest rates. At the beginning of the year, rates were close to 5%, and though they’ve gone up this month, they’re still under 4%.
If you’re a buyer, this means now’s a great time to buy. We still expect prices to increase incrementally, but not in the same way we’ve seen previously.
“The number of new listings on the market has dropped 14% since June.”
What about sellers? If you have a property in the higher price ranges, especially $900,000 and above, it’s imperative that you price it correctly—especially if the home needs to be remodeled. After all, a lot of buyers for these homes can only afford the down payment.
On a final note, the media like to report that the median sale price has increased 2.8% year over year, but the problem with that figure is it’s based on sales from May, June, and July. This means the sales taking place now won’t be reported until November, December, and even January of 2020.
If you have any more questions about our market or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d love to help you.
