What Goes Up - Must Come Down - You’ve seen the news, you’ve read the articles, SoCal Home Prices drop a whopping 18% in September, with some areas falling by as much as 22%, the greatest drop since the great recession.
Overall sales were up due to the price reductions coming into play and sellers possibly becoming more negotiable in terms of price and credits.
The shift may be a sign of softening as buyers have less buying power. The rise in interest rates adds several hundred dollars extra on a mortgage payment, tightening the squeeze on many first time home buyers.
Another factor is that there are more listings on the market, more inventory and less demand will create a slight shift in the market.
Although a bit too early to tell where the market is headed come Spring, one thing for sure is that price reductions are going to be a part of the new normal. It’s our opinion that this shift will look more like the 1994-1996 market vs the 2008 housing crisis.
As of Tuesday, December 13, 2018, #Burbank
has 84 SFR on the market with 25 of these homes having price reductions and the avg days on market for these properties that have been reduced is 77 days with an average list price of $968,270.
Other areas are as follows:
– 63 SFR on market with 24 price reductions and 109 days on market average for the properties reduced.
– 148 Active SFR with 68 price reductions and 129 days on average market time for the properties reduced.
– 432 SFR on market with 156 price reductions.
If you’ve been thinking of selling or buying, now is the time. Please reach out to us and put 32+ years of experience to work for you. We went through the 94-96 market, we went through the 2008-2012 market and we’ll be here for you through the next market shift. Pricing and marketing are going to be key factors in selling real estate in the market to come.
It’s still a great time to sell and a great time to buy. Interest rates are still historically low and home prices will have some adjustments but we’ll get through it. Remember real estate is cyclical. #socalrealestate #realestate #realestatemarket #homesellers #homebuyers