So we’re flying out of winter and into spring, and by now we should be watching home listings rise like Daffodils with thoughts of new neighbors and summer barbeques lifting our spirits. The part about Daffodils and BBQ’s is on target, but the part about homes for sale – nope. Currently there are only 5 homes on the market in Valmonte – Lunada Bay, Hollywood Riviera, and other parts of the hill aren’t much different. 2 of the current homes are perched above the canyon on Via Alondra and aren’t the most kid friendly homes, and the other 3 require a small mountain of cash to call your own – although they are quite nice homes worth every penny. So why isn’t anyone else selling?
If you’ve been following along with my posts, 2015 was a great year, and I would normally expect that to trigger new sellers looking to take advantage of the higher prices. For the last 2 years inventory of homes for sale has been hovering around 8-13 homes with a high of 18 in the fall of 2014. But inventory has been in a steady decline, both here in Palos Verdes Estates and the surrounding communities since September of 2015. That’s not slowing buyer demand. Interest rates are at or below 4%, and people are out looking for homes.
Why isn’t anyone selling? That answer to that question is like the snake eating it’s tail. Without new inventory, would be sellers don’t have a place to go. In turn, the homes that are for sale are being being driven up to valuations that make it hard for people to make the jump to a new home. As a result we’re seeing homeowners staying put, choosing to remodel and upgrade their existing homes instead of moving. I don’t blame anyone for staying. I’m not planning on leaving anytime soon – we love it here and the kids are not too far off from being immersed in school. For those that are considering downsizing, the process is a bit easier, but lower priced homes have even more competition and in most cases are seeing multiple offer situations.
Now maybe this is all for naught and there are actually lots of sellers in the shadows waiting until summer to sell? I personally know of a couple people holding off until school’s out, but that won’t make up for all the demand. As for the rest of our Valmonte neighbors, please let me know if you are thinking of selling – I have several families that want in on our great little neighborhood.
See you in the neighborhood – KD