2018 – A Year in Review – Part 2: Charts, Numbers, and Making Sense of It All

Happy New Year!!

In the first part of this blog topic I shared the FAQs about the recent changes in the Real Estate market, but I know that for those like me who are detail and fact-oriented, it comes down to seeing the math and charts behind it. Here they are.

  1. According to RedFin’s Median Sale Price report of December 26, 2018, the Los Angeles area real estate market is still close to the top of the curve, and although the nation-wide slowdown and the downward price trend can be seen, most of LA-basin areas have not experienced the severe price drop – at least not yet.RedFin's Home Prices, Sales, & Inventory report
  1. Again, per the same RedFin report, we did see an increase of price reductions among the properties currently listed for sale. In November, 22% of the listed properties had their initial prices reduced. This number not only reflects the shrinking prices of the local properties, but also the fact that many agents out there, sadly, will still happily list your property at whatever price you ask… Why would that be a problem?

While the current market is pushing our housing prices down, the buyers (and lenders!) and looking ahead at what they will have at the closing of the transaction (which, remember, can take several weeks, depending on the contract terms), and they are aware that the same property they are making an offer on today will likely appraise for less in just a month later.

Price your home at TODAY’s market rates, and you’ve effectively lost interest of a huge chunk of buyer population, who will already have factored in the market changes into their house-hunting strategy. Pricing above market also means you could be potentially losing those who may be stretching the budget to buy – if you end up 5-10K above their top price limit, your home simply will not show up on their radar and they will never see it. Result – you get fewer interested buyers, most likely will end up selling for less because of lower exposure, the home will spend longer on the market, or, if you are set on a specific price goal and do not want to negotiate, may end up not selling before the listing agreement with your broker expires. Solution? Get a detailed Comparative Market Analysis report from your agent, discuss your property features with him or her, and set a realistic price that will make your home a newly-listed rock star! Reasonable price will bring in more buyers and may even start a bidding war, in the process of which you very well may get the target price you had in mind in the first place (think of what happens on E-bay once people get into bidding and use it to your advantage).

Home Prices, Sales & Inventory - RedFin, 2018

3,4.  To see an example of the changes in a more area-specific view, let’s take a look at the beautiful part of Upland with the 91784 area zip code.Screenshot of a map showing the zip code area for 91784, Upland, CA

While this includes the gorgeous foothill communities of San Antonio Heights, where home prices tend to not suffer as greatly as the national averages, we still see the 1% drop in the list prices over last month, and the 1.46% drop over the past year.

At the 12-month level, the home values are still benefiting from the first few months’ worth of gains, before the market went flat in summer and then took the downturn in the following months: overall, we have still gained 3.8% in value compared to the prior year.Portion of a Neighborhood Report from RPR, CRMLS, for 91784

*Data Sources: CRMLS, Realtor Property Resource. “Market Activity Report for 91784” and “Neighborhood Report for 91784”. Retrieved December 26, 2018. https://www.narrpr.com/reports

5. The Sales Volume and the number of new listings went down a bit in the fourth quarter, which is not unusual for this time of the year, as many people opt to close their books, take time with their families away from business, and hold off on making any major financial commitments until the next year.Median Sales Prices and Sales Volume Listings

*Data Sources: CRMLS, Realtor Property Resource. “Market Activity Report for 91784” and “Neighborhood Report for 91784”. Retrieved December 26, 2018. https://www.narrpr.com/reports

Conclusion: As I mentioned in the part 1 of this topic, despite some media sources using the housing market slowdown to “predict” crisis, the sky is not falling. The market is cyclical, and after we have “climbed the summit” of the price curve this summer, it leveled off and continued on its curved path over the hump in the downward direction. Depending on your current financial situation and your goals for the future, there are smart winning moves that can be done under ANY market conditions, but they WILL have to be different and tailor-made to the situation and the desired outcome.

If you have any questions or would like a complete copy of any of the above-mentioned reports created for YOUR area zip code, reach out and I’ll be happy to help.

May this be the best New Year yet for you and yours!

Marina

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Marina Alkasas | Realtor® |Cal DRE License # 02070557 | Century 21 CARE

1081 Grand Ave, Diamond Bar, CA 91765

(909) 305-3519 | marina@malkasas.realtorhttp://malkasas.com

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