The beginning of 2018 saw San Fernando Valley home prices hit record high according to a report from the Southland Regional Association of Realtors.
The median price for a home in the San Fernando Valley is now about $700,000 breaking the previous median price record of $675,000 from November 2017 and up over sixteen percent from 2016. The median price in all of Los Angeles County is just under $600,000 which represents a 10.5% increase over the previous year.
High prices and an inventory shortage makes for an interesting market for both buyers and sellers. Buyers are facing the frustration of losing out in bidding wars and finding they are unable to afford the house they want in the desired location. Over 90% of the homes listed by Heather Farquhar & Todd Riley receive multiple offers and sell over asking price, sometimes with no loan or appraisal contingency.
According to the March 2018 Realtor Report published by the SRAR there were only 958 homes on the market in the San Fernando Valley in February. This is the lowest inventory since the SRAR starting keeping track in the 1980s. This sounds like great news for sellers, right? Well, yes and no. Yes, if you are downsizing or leaving the area, maybe not so much if you are planning to stay in the area. A common reason homeowners are reluctant to list their home is the fear of not being able to find a replacement property, after all, they become buyers in a tough market. This has made more and more buyers willing to give sellers a contingency to find a replacement home. In this type of market the more flexible the buyer is with the terms the better chance of getting the home they want. Another reason some homeowners are choosing to stay put is that interest rates have gone up since they purchased their home.
So if you are a homeowner this historically low inventory means that there couldn’t be a better time to sell. Low inventory means more competition, and more competition typically means higher offers and a better deal for sellers — especially if you’re selling a starter home. CLICK HERE to receive a free Market Analysis of your home
Thanks to millennials entering the home buying market for the first time, starter homes are the most in demand selling point on the market. And since they experienced a 17% decrease in supply from 2017, a great starter home is an even hotter commodity in 2018.
If you are a buyer thinking of entering this market be sure to have all your financing ducks in a row BEFORE you start your search. This is a competitive market and if your offer is not packaged properly you will lose out in multiple offers every time. Find a Realtor you trust and listen to her suggestions. CONTACT US and we will tell you how we help our buyers get their dream home in this seller’s market.