These past few months real estate in the San Fernando Valley has been breaking new records…
BUT as records show the supply has decreased over the past 5 years
Below you can see the number of listings over the past five years and you can see what the median prices have been for the year. As you can see it’s clearly been heading in one direction, but the listing inventory has been showing signs of weakening.
Talking to some of my fellow colleagues I’ve been hearing the same comments and have been asked the same questions. I am not surprise about the limited inventory. I’ve been following the rental market very closely because I have been helping one of my client’s lease a few of their properties. It’s amazing to see the interest shown in rental homes in comparison to purchases and its because many people are sitting out and they’re “waiting” I find this fascinating because many of them have no idea what they’re waiting for, but they just all know that “something isn’t right” Unfortunately the economy isn’t showing any signs of weakening just yet and with the decrease in the jobless claims and the increase in the expected GDP we’re heading towards higher interest rates.
With these interest rate increase this could potentially cost some buyers their chance to lock in their first home or refinance to get themselves out of their PMI if they’ve purchased the property within the past few years.
If you look at the San Fernando Valley Sales Analysis you can see that the average change between 2013 and 2016 shows the median home price to have changed a total of $126,753 dollars to the plus side which is a 20.89% change in value. This should be enough to help all of those who purchased and are paying PMI to get out of that payment which could end up saying them thousands for an insurance that they’re not even receiving a tax benefit for.
The fed has already increased the rates this year and they’re showing signs that they’re getting ready to do it again this upcoming December. https://nyti.ms/2jL202r
I am expecting that these rate increase could put a hold on the recent uptrend of valuation for luxury properties, but it might not affect as many homes that are currently on the market unless there is an increase in inventory.
If you’re interested in selling your property please contact us for a market analysis. If you’re interested in purchasing let me know. I have a few neighborhoods that I’ve been researching for some of our investors and I would love to help get some of you into your first home or help you with any real estate related questions and needs.