Analysis: A quick take on Arcadia and residential properties with near-term upside.

Over 100 residential properties have closed in Arcadia in 2017 and about 200 are currently active and listed for sale. Here's what the data tells us about this coveted LA community.

Key Takeaways:

• Of the 100+ homes sold in Arcadia in 2017, the average selling price has been $1.4M, while the median is $1.1M. Although average is greater than median, we're seeing a much tighter band in Arcadia relative to the rest of LA, so homes are more normally distributed in terms of price.
• Average days on market for homes sold is 64, while median is 50. Generally speaking, homes are sitting on the market for about 2 months before selling. This is more or less true across all price points in Arcadia and is higher than the LA average by about 10 days.
• There are currently 20 homes listed in Arcadia below the $1M price tag. And with most selling prices in the $1.1M - $1.4M range, this means lots of potential upside for buyers and an opportunity to sell for homeowners looking to list below $1M.

So what does all this mean?

Well, first Arcadia is certainly one of the higher priced real estate markets in LA, with most homes going for over $1M. With higher price tags comes more days on market, so patience is key for locking in value for both buyers and sellers.

Well qualified buyers have opportunities to buy below $1M and gain plenty of equity in the near term. Homeowners looking to sell below $1M also have a unique positioning opportunity for home buyers looking to ramp up on equity.

Arcadia is definitely a challenging market given current price points and just stagnation in LA on the higher end of the market. However, there are opportunities in the low end price points that could be attractive for speculative buyers and homeowners who seek them.

We love talking strategy here at Contempo, especially when it comes to positioning difficult homes in what appears to be cold markets. Arcadia is just one example.

If you're looking to sell or looking to buy properties with the most upside, reach out and we can talk strategy.

Sellers can also try our free market analysis to get a view into who you're competing with for the best buyers.

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Analysis: Active residential listings in LA and where there's lots of action. (Part 1)

We took at look at over 2800 active residential property listings in LA to give you a sense of where there's action and what sellers can expect as the season heats up. Here's what we found.

 Key takeaways:

• There are currently over 2.8K active listings in the greater LA area. This includes single family residences, townhouses and condos. This is the size of the active pool in LA that buyers will be considering in the weeks and months to come. As we mentioned in a previous post, however, you can expect this number to increase significantly towards the end of March all the way up to June.
• The median price of all active listings is currently $988K, while the average is $2.2M. When average is greater than the median, this means there is long tail of very expensive properties pushing the stats higher.
• Right now, 1/3 of all listings are well above $1.5M. This is a pretty solid distribution of competition across all price points.
• Single family residencies account for 71% of all active listings (just over 2000 listings). The median value of single family residencies is currently $1.2M across all areas.
• About 10% of active listings (200) have lowered their price by a median reduction of $29K. That's pretty substantial and indicates plenty of competition for the right buyers.
• Beverly Hills and Pasadena have by far the most active listings with about 200 each. In these types of extremely competitive environments, we can expect more downward pressure on price as properties will compete for the best buyers.

So what does all of this mean? It's simple. The season is just getting started and competition is already ferocious.

What I'm most looking out for is price action. Right now 10% of listings are consistently lowering their price. With more listings entering the market, it will be interesting to see what happens to that number.

I still think it's a sellers market. I do think homes need to be positioned strongly to the right buyers so they can uphold their prices. Right now, at least 10% of homes are missing out on the low housing supply advantage.

Are you thinking of selling your home and want to talk strategy? Feel free to reach out. You can also try our free market analysis service to help you with your research.

72 Hour Home Selling Program

Your home sold in 72 hours or we're fired.

Analysis: Price action in Burbank and what it says about the competition for ideal buyers.

Burbank is one of the most competitive markets in LA. Recent price action says a lot and buyers and sellers should take note. We analyzed price movements to show you where there's high competitive pressure.

Here are the key takeaways:

• There are 48 active listings in Burbank for single family residences. This is the size of the active pool buyers are considering if they want to move to Burbank. For sellers, this is your larger competitive pool.
• The average price is $973K, while median is $820K. When average is greater than the median, this means there are a handful of really expensive homes pulling the average up (common in LA). 
• Two-thirds of active listings are between $540K - $900K. This is where we're seeing most of the pricing action. This is the meaty part of the market.
• Since December 2016, we've seen 13 price decreases among active listings. That means 27% of all active listings in Burbank have lowered their prices.
• The average price decrease is $21K, median is $15K. This is especially interesting considering many believe this is a sellers market (low supply high demand).
• What we're actually seeing is an overestimation of value and weak positioning of homes for almost a third of active listings in Burbank.

It will be interesting to see what kind of price action we'll see in the future, especially as more listings flood the market this spring. This is something buyers and sellers should pay attention to closely, especially if they wanna jump in the market.

It's only gonna get more competitive, so you need to be prepared. We can help. Try our free market analysis service. We'll get back to you with a tailored assessment of your market.