The San Fernando Valley hot housing market continues through the end of 2020 on a high note. Sales are still driven by historically low interest rates, and prices pushed higher from low inventory. Basic supply and demand out of balance.
The attached charts reflect the levels of newly opened escrows and inventory relative to the last two years. The chart showing the sales price range volumes for single family dwellings shows year over year how the sales volume has been pushed to the more than $600,000+ range. That’s due to the lack of inventory in the lower price points.
At some point there will be a market stabilization. The construction of new affordable housing has fallen well behind the amount required to house the population for decades due to strict zoning, environmental requirements, local development fees, labor costs, and NIMBU opposition. There is a push to develop more housing, but it’ll take a while to make a dent in the amount needed. Los Angeles gov’t representatives are complaining that it’s costing $500,000 – $750,000 to develop an affordable housing unit using the Proposition HHH taxes allocated to build affordable housing… Go figure?
Let’s take a look at the latest San Fernando Valley final housing numbers for November. The statistics below are only for single-family dwellings, omitting condos… A couple of the average and median values are slightly lower, but that is not an indication of a softening market.
ACTIVE INVENTORY (November vs October)
New listings 457 (was 630)
Total Active Listings 621 (was 711)
Average Days on the Market 72 (was 61)
PENDING AND CLOSED SALES (November vs October)
New Escrows Opened 476 (was 527)
New Escrows Days on the Market 26 (was 26)
Escrows Closed 473 (was 449)
Average Sale Price $1,038,100 (was $1,098,500)
Median Sales Price $810,000 (was $841,000)
Average Days on the Market 28 (was 30)
Note: The average is the total sales dollars divided by the number of sales… The Median reflects half of the sales are priced above and half below.
Each region, neighborhood, and property has its own elements and dynamics. The numbers above are of the entire SFV, but exclusive of properties in the MLS but located outside of the SFV .
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me
Ron Henderson GRI, 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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