Let’s take a look at the trends in the North and South San Fernando Valley for the last 3 months. Looking at just single family home sales in these markets, I look for trends in price and volume. While each neighborhood will have its own variables that effect the price, with this analysis I am sharing general trends in our local markets.
Summer is traditionally a very busy time for real estate. As the school year comes to a close, many families look at this as a good time to make a move and we see an increase in inventory and volume. Interest rates have jumped since the beginning of the year, rising gas costs and inflation are all taking a toll on the home buyer. For the past few years we have seen homes selling under 10 days with multiple offers, now they are staying on the market a bit longer. This will take an adjustment for the mindset of sellers as we return to a more traditional stable market. Homes that are “turn key” are going to have more interest than those that need a lot of work. In the North Valley, we are seeing price stability in the average price and a slight decrease in price/sq.ft. In the South Valley, the average price increased but the price per square foot remains stable and the number of properties sold is decreasing. The increase in price could be attributed to some outlier properties. We do expect the percentage increase to be smaller than last years abnormally high numbers of double digit increases. If homes are priced properly, we continue to see multiple offers, although not always the “2o” offers we were experiencing. it may be more like 3-5 offers.
Ultimately, when it comes to price, it will always come down to area sales and what others are willing to pay for the same house.