San Fernando Valley Single Family Housing median price is up 13% year over year. A far cry from the calls that we would have a housing price crash. As I’ve conveyed numerous times, it’s just a matter of supply and demand. Active listings should seasonally go up soon, but statistically is over 30% lower than last year. The high-interest rates are hurting affordability, but the demographics of new buyers entering the market are larger than the Baby Boom Generation.
The rates have dropped recently, adding buyers who qualify and putting pressure on housing prices. The last month’s easing of mortgage rates has stirred up buying interest. Though limited now, expect housing inventory to improve after this winter and heading into the spring. More inventory in conjunction with lower rates should stimulate the sales market. Multiple offers, are still occurring, especially on starter and mid-priced homes, even as price concessions are happening in the upper end of the market.
While circumstances for buyers remain tight, home sellers have done well as prices continue to rise year-over-year, including a new all-time high for the month of October. Owners have accumulated well over $100,000 in housing wealth over the past 3 years.
Motivation to sell when the majority of owners have under 4% mortgage rates is low. Over time existing low-rate mortgages will fall away by attrition, or life events happen. Last year there were 7 million newborn babies, 3 million marriages, and 1.5 million divorces.
Note: Townhouse/Condo purchases must be evaluated substantially. Many Homeowner Associations are under heavy financial stress. Primarily because insurance costs (locally and across the nation) are increasing substantially. That can result in higher HOA dues, special assessments, or inadequate insurance for the complex. Any of those elements can put financial pressure on an owner/buyer, or lower the viability of the complex to get financing. That would subsequently lower the value of the units in the complex. Any question, I have substantial knowledge in these matters.
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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