The residential real estate market in the San Fernando Valley, Los Angeles region, has stabilized. Inventory is up but still remains moderate by historical standards. The quantity of sales has dropped, and affordability remains tight.
The recent drop in mortgage rates, from 8% in October 2023 to 6%, provides some relief to those needing a loan. Well-qualified buyers now have more property choices than they’ve had in a while. Well-priced properties can move quickly, sometimes attracting multiple offers. However, properties with issues or those priced too high may sit on the market for longer.
Some buyers are holding off for various reasons, including concerns about the upcoming election.
There are plenty of First Time Buyer programs out there, but buyers, property and the numbers still have to meet the criteria.
Potential sellers with sub-4% mortgage rates aren’t motivated to moving and having a higher rate. As rates move into the 5% range, the math starts to work.
Homeowners insurance is becoming a significant issue, both in terms of availability and affordability. One of the first things I advise buyers to check is insurance. High insurance costs can be problematic for those with marginal debt-to-income ratios.
Condo complexes and homeowners associations are also facing several issues at present. When was their master insurance policy last renewed? Have they completed the state-required balcony inspections? Are there any special assessments on the horizon? Are the dues going up? Are the required reserves in place? It’s crucial for potential buyers and current owners to conduct a thorough evaluation of what’s happening within the complex. Hopefully, insurance rates and HOA issues stabilize next year.
The recent changes to commission structures and the increased use of buyer-broker agreements have added complexity and negotiation to transactions. That said, most recent deals have still been handled in the same way they have been for decades, with concessions and commissions being factored into the sales price.
If you are in the Los Angeles area, and have any questions or real estate sales or financing needs, feel free to contact me
Ron Henderson GRI, SRES, SFR, RECS, CIAS, CREN, GREEN
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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