The market trends are starting to change. Inventory is up, prices are leveling, but buying activity is stable. What does this mean for the market? (scroll down for my prediction)
The number of active listings is trending higher compared to April 2016. In Redondo, this can mostly be attributed to more condo availability.
Month’s supply is climbing compared to one year ago, suggesting more sellers are willing to sell, keeping pressure on prices. The biggest impact on prices has to do with competition and buyers ability to buy. Less inventory, rising prices. More inventory, stable prices.
Prices on a price/foot comparison have leveled, with the exception of South Redondo, which still has some room left to run. That could be changing, as there are over 20 new town home projects slated to hit the market later this year. Could this mean a flood of new inventory?
The median price of single family homes and townhouses has plateaued as median prices edge closer to $2 million. Redondo is still seeing price growth, but with rising inventory, prices may be slowing there as well.
My Predictions for the rest of 2017 If you are a seller, things are still good, especially if you are selling a lower priced home to move up to a larger or more expensive home. If you are selling a house $2 million or higher, you’ll need to be patient or aggressive with your pricing. If you are a buyer, keep an eye on the market. As long as inventory continues to rise as it’s expected through the summer, there will likely be more opportunities to negotiate a good purchase price, especially towards the end of summer. With interest rates remaining in the low 4% range, you are still getting a great deal on the cost of your loan.
However, If you are looking to buy a home under $1 million, you better be ready to play ball. Homes in this price range continue to see multiple offers and it’s not likely to change anytime soon. Inventory throughout the South Bay under $1m is still less than 2 months supply. To repeat what Leslie Appleton Young mentioned in her recent discussion with Teles Properties staff, the market is healthy and is not showing signs of a bubble, but depending on where you are buying or selling, you’ll need to tailor your plan to your specific goal.
Feel free to reach out if you would like to discuss this in greater detail or would like to get started on your plan to buy or sell real estate.