# Los Angeles home sales declined by 24 percent year over year in September, with all local communities except the Eastside showing a decline in the third quarter, bringing 2018 housing market activity to 11 percent below last year.
# Following a strong start for higher-priced sales at the beginning of 2018, sales activity slowed in all price ranges in the third quarter, and sales of homes priced higher than $1 million are now trending with 2017 activity.
# Inventory is also 10 percent below last year’s levels, suggesting about 1,100 fewer homes on the market. South L.A. posted the largest inventory drop, down by 34 percent, followed by a 27 percent decline in Downtown L.A. and a 24 percent decrease in Foothill Communities.
# Despite slowing annual price growth of 2 percent, almost half of Los Angeles communities posted appreciation of more than 10 percent — particularly in Northeast L.A., Foothill Communities, Eastern Cities, and Beverly Hills.
# Price reductions rose by 3 percentage points, from 21 percent last September to 24 percent now. More reductions were seen in greater Malibu, Foothill Communities, the Eastside, the West Valley, and the South Bay.
# The rebalancing between buyers and sellers is being driven by affordability constraints and buyer fatigue.
Existing home sales slump to a near three year low as some home buyers back out. Home prices are still growing faster than wages, but the pace of price increases is decelerating steadily. Recent sluggishness seems increasingly driven by softer demand from would be home buyers in the face of two emerging trends: falling rents and rising mortgage rates.
There is still a lot of energy left in the housing market, but the rapid rise of the past few years has clearly begun to level off. On average, homes are taking longer to sell and are receiving fewer offers than before. (Source: marketwatch.com)
Buying a first home is scary, overwhelming and exciting. The largest hurdle is where and how to start. Most buyers do not know that realtor’s services are free to the buyer. So they are fearful to hire an agent. A realtor has fiduciary responsibilities to protect buyers. They assist buyers with everything from financing and finding that dream home to negotiating the best price, and a smooth close. Time to buy a home? Call today 323-717-2262
Zillow reports that the best time to sell a house to get the highest price and minimize time on the market is in the spring — specifically, during the first half of May. But that doesn’t tell the whole story. Though homes listed for sale during this window sell nearly two weeks faster than average, and for an extra $2,500 to boot, a big part of that has to do with weather-related factors.
In parts of the country where all four seasons exist, spring has the advantage of attracting potential buyers who are done hibernating and are ready to do the legwork of visiting homes in person. Houses also tend to have more curb appeal in the spring, when flowers are blooming and grass is vibrant and green. But in some parts of the country, seasonal weather doesn’t come into play nearly as much
Here is a list of 5 most common requests that home buyers make to sellers to close the deal
#1 “lower the sale price”
#2 “make minor repairs”
#3 “pay for some/all buyer’s closing costs”
#4 “change the closing date, extend or shorten escrow period”
#5 “give money to buyers instead of making repairs to home”
(source: consumer housing trends report 2017)
Attention Home Sellers: an experienced Realtor can help you mitigate these requests in your favor
The real estate market is tied into consumer confidence and sentiment. That is why it’s important to track the consumer confidence survey. The Conference Board Consumer Confidence Index® decreased in March, following an increase in February. The Index now stands at 127.7 (1985=100), down from 130.0 in February. Consumers’ assessment of current conditions declined slightly, with business conditions the primary reason for the moderation. Overall expectations remain quite favorable. Despite the modest retreat in confidence, index levels remain historically high and suggest further strong growth for the economy (and real estate sales) in the months ahead.
The real estate market is tied into consumer confidence and sentiment. That is why it’s important to track the consumer confidence survey. The Conference Board Consumer Confidence Index® increased in February, following a modest increase in January. The Index now stands at 130.8 (1985=100), up from 124.3 in January. Consumer confidence improved to its highest level since 2000 (Nov. 2000, 132.6) after a modest increase in January, Despite the recent stock market volatility, consumers expressed greater optimism about short-term prospects for business and labor market conditions, as well as their financial prospects. The proportion expecting more jobs in the months ahead increased from 18.7 percent to 21.6 percent.
Overall, consumers remain quite confident that the economy will continue expanding at a strong pace in the months ahead. Consumers’ outlook for the job market was also more positive. (Source: Consumer Confidence Survey)
The real estate market is driven by the emotions (and confidence) of home buyers. That’s why tracking the Consumer Confidence Index will give you an indicator of things to come in the future of real estate sales. The Consumer Confidence Index® decreased in December, following a modest improvement in November. The Index now stands at 122.1 (1985=100), down from 128.6 in November. The decline in confidence was fueled by a somewhat less optimistic outlook for business and job prospects in the coming months. Consumers’ assessment of current conditions, however, improved moderately. Despite the decline in confidence, consumers’ expectations remain at historically strong levels, suggesting economic growth will continue well into 2018.”
I predict the real estate market will stay steady yet may see prices increase at a slower pace.
Source: December 2017 Consumer Confidence Survey®
If you are ready to buy/sell a home or have any questions, call me today…