As the San Fernando Valley housing market transitions from the scorching summer into the cooler days of fall, it maintains its position as a highly competitive and dynamic landscape.
- Tight Inventory Persists: One of the defining characteristics of the San Fernando Valley housing market in 2023 is its persistently tight inventory. This trend, which was prevalent throughout the summer, remains unchanged as we head into the fall season. A limited supply of available homes has created fierce competition among prospective buyers, pushing property prices upwards.
- Existing Property Owners Benefit from Low Mortgage Rates: For existing property owners in the San Fernando Valley, the prevailing low mortgage rates have proven to be a silver lining. Many homeowners have locked in historically low rates, allowing them to enjoy reduced monthly payments and a stronger hold on their investments. This has led to a reluctance among some to sell their homes, further contributing to the limited inventory.
- Higher Mortgage Rates Impact First-Time Buyers: Conversely, the increase in mortgage rates has posed challenges for first-time buyers in the San Fernando Valley. As rates creep higher, the affordability of homes becomes a concern for those entering the market for the first time. The dream of homeownership remains just out of reach for some, despite the strong desire to invest in the Valley’s real estate market. There are many Down Payment Assistance Programs and low down payment loans, but income to qualify can still be an issue.
- Demand Continues to Outstrip Supply: The undeniable truth is that demand for housing in the San Fernando Valley continues to outstrip supply. The resulting competition among buyers further reinforces the Valley’s reputation as a seller’s market. Well priced properties that show well can receive multiple offers… Over priced properties that show poorly can sit on the market for an extended period.
- Steady Property Value Appreciation: In the face of these challenges, property values in the San Fernando Valley have remained remarkably solid. Many homeowners have seen their investments appreciate at a moderate rate, providing them with confidence in the resilience of the market. This is good news for current property owners who can expect their homes to retain or increase in value.
- Potential for Record-Breaking Figures: With the current trajectory of the San Fernando Valley housing market, there is a distinct possibility that property values may reach record-breaking territory by the end of the year.
As the San Fernando Valley housing market transitions into the fall of 2023, it remains characterized by tight inventory, low mortgage rates benefiting existing property owners, and higher rates challenging first-time buyers’ affordability. The persistent demand continues to outstrip supply, reinforcing the Valley’s reputation as a seller’s market. Despite these challenges, property values are on the rise, and the market holds the promise of reaching record-breaking figures by the end of the year. Navigating this dynamic market requires both vigilance and a well-informed approach, as it remains a hotspot for real estate activity in the Greater Los Angeles area.
If you are in the Los Angeles area, and have any questions or real estate sales or financing needs, feel free in contacting me
Ron Henderson GRI, SRES, SFR, RECS, CIAS
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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