It’s hard to believe that we’re just weeks away from July, and so much has happened in our San Fernando Valley market between the first of the year and now. Without further ado, let’s dive right into what we’ve been seeing in the market of late:
Out of 12,000 single-family units located in the 91326 area zip code, we currently have just 60 properties for sale. Toward the end of April this year, inventory was equally scarce with as few as 43 properties for sale. And this translate to roughly 1.9 months of inventory that we had at the end of April, but we’re currently sitting at 1.7 months still available.
Historically speaking, inventory levels are usually a little higher following Easter—a trend that signifies the start of the spring selling season.
Right now, buyers are still showing a keen interest in getting into the market, which can likely be attributed to the steep decline in interest rates this year. To give you a better idea of just how far rates have fallen, consider that, in December, buyers could expect their rate to be anywhere from 5% to 5.25%.
As for today’s market? A lot of buyers are securing rates between 4% and 4.25%, and in some cases, lower than 4%.
The same buyers who may have shown reluctance before are now jumping off the fence and into the market to take full advantage of their increased purchasing power.
“Right now, buyers are still showing a keen interest in getting into the market.”
Additionally, knowing full well they can get more home for their money, buyers from the southern and western part of the valley are continuing to trickle into northern areas of our market. As a result, correctly priced properties are seeing multiple offers stack up.
This is especially true of homes in prime condition because, despite all their purchasing power, quite a few buyers have little money left over for remodeling after they’ve bought a home.
If you have any questions related to real estate, give us a call at 818-396-3311 or you can email us at Scott@ScottWorks4U.com. We look forward to speaking with you!
