As your trusty L.A. Realtor, it’s my job to keep you informed on all things real estate and today I’m going to explain exactly what is happening in the Los Angeles real estate market and that is this: there are 70,000 fewer “for sale” signs this year in Los Angeles County vs. 2022! That’s right…70,000 fewer homes for sale in L.A. County at this time vs. last year. WHY?
The reason why is that people are ‘hunkering down’ in their current homes due to their existing low mortgage interest rates. The numbers to sell and buy a new home just don’t ‘pencil out’ given the current high interest mortgage rates. The result is many sellers are opting to stay in their current homes.
California homeowner mortgage interest rate statistics:
– 87% have a mortgage interest rate below 5%
– 69% have a mortgage interest rate below 4%
– 30% have a rate below 3% – the highest in history
So what does this mean if you want to buy a home in Los Angeles or sell your home in Los Angeles to buy another? Probably not as much as you think – there is activity and there are solutions.
As a top Realtor at Compass in Los Angeles who is ‘in the trenches’ with buyers and sellers every day, I’m seeing homes selling quickly and with multiple offers and over-asking prices. For example, my recent San Fernando Valley listing sold in under 30 days at $1,200,000 – – slightly over asking price!
But let’s explore it further…
According to the California Association of Realtors (CAR), California housing affordability slid to its lowest level in nearly 16 years during the second-quarter 2023.
Highlights of that report include:
– Sixteen percent of California households could afford to purchase the $830,620 median-priced home in the second quarter of 2023, down from 19 percent in first-quarter 2023 and down from 17 percent in second-quarter 2022.
– A minimum annual income of $208,000 was needed to make monthly payments of $5,200, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 6.61 percent interest rate.
– Twenty-five percent of home buyers were able to purchase the $640,000 median-priced condo or townhome. A minimum annual income of $160,400 was required to make a monthly payment of $4,010.
(Source: California Association of Realtors, August 11, 2023)
SELLERS: ACCURATE HOME PRICING IS CRUCIAL
If you’re thinking of selling your home, the good news is that if your home is accurately priced, it will sell. This is not the time to stretch the asking price. Affordability is a very real issue and buyers cannot and will not tolerate over-
priced homes.
Throughout the course of helping many home sellers sell their properties for top dollar, I know, not only how to get your home looking its best for the market, but also how to market your home to find the right buyer and then sell it for the most money possible. And isn’t this what you want?
MY SILVER LINING AGENT PLAYBOOK THAT WORKS EVERYTIME
Pricing
Now is not the time to risk inaccurate pricing of your home. Make sure you have up to the minute information on comparable properties and an agent that has a firm grip on the reality of the condition of your home.
Marketing Plan
The usual marketing tactics – throw it on the MLS, have an open house and wait for a buyer won’t cut it – even in this low inventory market. I have proven ways to extend the exposure of your home above and beyond the
usual tactics. Today’s market demands more than a ‘business as usual’ approach to marketing and frankly, you deserve better.
So if you’re thinking of selling, interview me and I’ll explain exactly what I mean.
My personal phone number is (818) 399-8818 and my email is:
[email protected].
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