Analysis: Real estate price action in Northridge and what buyers and sellers should know.

We looked at over 230 properties in Northridge either currently active or sold in 2017. Here's what the data tells us about the market and what folks should know if they're looking to jump in or if they're already in the mix.

Here are the key takeaways:

• There are currently 105 active listings in Northridge, 89 are single family detached homes and the rest are condos / town houses. This is the size of the active pool buyers are considering if they want to move to Northridge. For sellers, this is your larger competitive pool.
• The average price is $839K, while median is $755K. When average is greater than the median, this means there are a handful of really expensive homes pulling the average up (very common in LA). 
• In terms of size, we have a pretty normal distribution--both median and average are around 1640 sq ft, on the larger side relative to the rest of LA.
• Out of the 105 listings, 32 have changed their price. Most of which (about 85%) have been price decreases. The average price decrease is $33K while median is $22K.
• 134 properties have closed in 2017 thus far. Median selling price is around $600K, while average is $635K. Average days on market is about 53, median is 38. This is the sweet spot for sellers as we move into the selling season.

Okay so what does all this mean?

First, in terms of active listings, Northridge is a very competitive market! 

A big chunk of homes are around the same size, but have significant variance in price. This means plenty of room to negotiate for buyers, and pressure on sellers to defend value. I love this sort of competition. We're seeing this play out in the price action.

Second, we're seeing price action for almost 30% of active listings, with most lowering their price. Agents and their clients seem to be jumping in with high expectations and unfortunately weak marketing skills, because prices are dropping.

Finally, based on the data of closed deals in 2017, we're seeing houses at the lower price points close. This makes total sense right now. With a pretty normal distribution of size, buyers are grabbing deals at the lower end because these homes have the most upside.

This is the type of action I like to see and it's the type of competition I like to get into. If you're looking to jump in the market, or perhaps you're already there, reach out and we can talk strategy.

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Analysis: Active residential listings in LA and where there's lots of action. (Part 2)

We analyzed 2000 residential properties sold in 2017 thus far. Here's what we learned about what's selling, at what prices and at what volume. This is especially useful for homeowners looking to sell and get into the market mix.

Key takeaways:

• About 2000 residential property deals (from single family homes to condos) have closed in 2017 year-to-date (**see areas below). The average close price is about $1M, while the median is about $700K. In other words, these are the prices homes are typically selling for across the greater LA area.
• These prices are dramatically different from what we're seeing in the current active listing space. If you recall from the previous post, the average price of active listings is $2.2M while the median is $988K. These are 200% higher than the average and 50% higher than the median of what's actually been closing.
• Almost 50% of deals are for properties between 1000 - 1500 square feet. This is where the bulk of the competition is highly concentrated. These homes are selling for anywhere between $600K - $800K on average. These are pricing anchors for sellers who want to charge closer to $1M for homes within this size range.
• Interestingly, 25% of deals are for homes above 2000 square feet. This highlights the ability of larger homes to take a chunk out of the selling share. Larger homes are definitely closing at a healthy pace, so there's clear demand.
• For homes between 2000 - 2800 square feet, $1.1M - $1.6M seems to be the sweet spot price range based on average closing prices in 2017.

**Areas we analyzed: Los Angeles, Burbank, Glendale, Pasadena, Sherman Oaks, Northridge, Tarzana, Beverly Hills, Granada Hills, Van Nuys.**

So what does this all mean? First, closing prices are way below the prices of active listings, so as we've mentioned, there will be pressure to defend value. We do know that supply is low, so sellers can still have an advantage if they position their homes the right way.

Second, there are pricing anchors for areas where there's high competition in terms of square footage. Sellers should be aware of this and be sure to focus on key differentiators of their homes and neighborhoods that justify prices above median or average.

Interested in talking strategy? We can help. You can also try our free market analysis, and we'll provide something tailored just for you.

72 Hour Home Selling Program

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

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.

Analysis: Active listings in Torrance and what it means for sellers.

Torrance is the "hottest" market in LA right now. So what do potential sellers need to know about the competition? We analyzed current listings to show you the lay of land--what it will take to succeed and where we expect to see key challenges.

Here are the key takeaways:

• There are 63 active listings in zips 90504, 90501, 90505 and 90503. This is the size of the active pool buyers will be considering if they want to move to Torrance. For sellers, this is your larger competitive pool.
• The average price is $795K, while median is $750K. When average is greater than the median, this means there are a handful of really expensive homes pulling the average up. In reality, most homes are closer to $750K or much less.
• Almost 60% of active listings in Torrance are between $530K - $930K. This price range will have the most competition. Sellers in this range must be prepared to defend what makes their property different. See the distribution chart below.
• Similarly, 50% of active listings are between 1000 - 1700 sq feet. This range has the most competition and will demand greater differentiation.
• For the 1000 - 1700 sq. foot range, the average prices are between $600K - $735K. Homes expecting prices above the average will face pressure to reduce or defend value.
• 23 active listings are for homes built between 1948 and 1957, with an average price of $880K. There are 11 listings for homes built between 1998 - 2007 with an average price of $767K. We expect immense competition between these two groups.

**Please scroll through the charts below.

We love crunching numbers and empowering clients with the ammo they need to be competitive. If you're interested in selling your home,  we can provide a similar analysis for you, free. Click here and try our service.

Thinking of selling your home in 2017? Here's what you need to know.

Higher prices and low inventory in LA tell a convincing story for why you should sell in 2017. Many agents are clearly pushing for this narrative. While I generally agree, I always tell folks it all depends on what your objectives are. So here's what you need to know.

1. Keep an eye out on mortgage rates (because your potential buyers are). The 30-year fixed rate in LA ticked down to 4.47%, but is still above the national average. Nevertheless opportunistic buyers (especially those with great credit) will be watching this closely looking to lock into a good rate early. If interest rate expectations hold, expect to see the bulk of loan applications crowd into Q1 and Q2 of this year because mortgage rates will likely go up by end of year.

What this means for you: Get to know the pool of buyers coming in now and what they're looking for in a home. This can give you the upper hand early in the game.

2. Know your competition (I can't stress this enough). A dose of reality early in the game is the best antidote for disappointment down the road. If you're looking to sell your home, you're essentially putting a product out in the market that is competing with others. Some will have different designs, some will have been recently renovated, the list goes on. Here's my point. Ideal buyers will value your home relative to what else is out there.

What this means for you: View the market from multiple angles beyond just price and CMAs. Know how many homes you'll be up against, how they break down by distinct features and designs and who the ideal buyers are in your area. Knowing the demographic shifts are also key in understanding who are the most likely buyers of your home--most CMAs miss this entirely.

3. Higher prices and low inventory can also work against you. Selling your home also means you'll be thrown into a market with higher prices and low inventory assuming you're looking to continue to own.

What this means for you: Narrow down your ideal neighborhoods and understand current playing field of available inventory. The more data and knowledge you have, the less susceptible you'll be to the price advantage of sellers.

I encourage home owners to take advantage of market opportunities when they present themselves. But I also encourage them to be armed with the right data and knowledge so they can maximize ROI.  

Try our free market analysis service and see what we can do for you.

Where does your zip code rank in terms of real estate "hotness"?

Check out the "hottest" real estate markets in LA and Long Beach by zip code. Torrance is holding it down pretty strong with three zips in the top 10, followed by Lakewood with 2. Where does your neighborhood rank?

Source: Realtor.com

Are you thinking of selling your home? Not quite sure how your zip stacks up? Reach out and I'd be happy to discuss potential opportunities.

VIDEO: Is LA's luxury housing market optimistic about Trump?

There's no doubt Trump is controversial. But as an investor and agent, it's my job to cut through the yelling from both sides to find new opportunities for my clients. We all know Trump's a real estate guy. So what does that mean for LA's housing market? Here's a really smart video from luxury housing market pros.

Ktown's real estate opportunity and the backdrop of high crime rates.

There's been much talk about the development of Ktown, from kick ass new hot spots, cool restaurants and all sorts of neighborhood revivals along the Wilshire Corridor. On the surface this bodes well for the long-run property values in the area, but under the hood, K-town's crime rates are still among the highest in Greater LA.

As a residential real estate investor, these are major considerations I often discuss with clients looking to buy or sell.  On one hand, we're amid a major wave of development. Among them will be 30+ new buildings that alone, will change Ktown's skyline completely. From mixed use properties to high rise condos and the like, we'll definitely see a spike in commercial activity and new tenants flooding the half dozen zip codes of the area, bringing new sources of wealth.

On the other hand, there's the stark reality of consistently high crime rates. And I'm not talking smash and grabs, but actual violent crime. The LA times has an awesome crime mapping site; check it out and see for yourself. K-town still ranks among the top 20% in violent crime and the top 50% in property crime. It will be interesting to see how further development of Ktown will impact (hopefully reduce) crime rates.

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What does this mean for real estate today in Koreatown? Reach out and we can talk strategy.

LA housing market needs a boost!

The most recent Census report highlights national home ownership rates remained flat at 63.7%. LA, however, continues to lag with a 49% home ownership rate. As we've noted here at Contempo Realtors, low supply, coupled with higher prices can pose a big challenge for buyers. We've gotta make moves and increase supply!

Climbing LA prices means current inventory will be increasingly unaffordable to most Angelinos. Meanwhile, cities like Dallas and Houston are becoming more accessible. With more favorable regulations for development and urban sprawl, Texas certainly has an advantage over California, which is bedeviled with highly restrictive building regulations.

Here's an interesting piece from the Hill about what legislators can do with zoning ordinances to boost LA's housing market.

Are you thinking about selling your home? Do you want to know how all of this impacts you? Please reach out for a free consultation.

Low inventory and higher prices in San Fernando Valley

Annual home sales in the San Fernando valley have been below the 7,000 level since 2010. In 2016, total sales equaled 5,643 down 4% from 2015. Market observers expect this trend to continue in early 2017 as low supply and high prices continue to dampen the market.

What does this mean for folks looking to sell? Feel free to reach out and I can give you a personalized assessment.

Median home prices in Venice closing in on $2M

A recent report highlights median home prices in Venice rising by 15% in 2016 and rapidly approaching $2M per home. We know from a previous post that while prices are rising, actual sales have fallen. This could create excess supply that will force prices to stabilize. Sellers should take note.

If you're thinking about selling your home and want a free market consultation, feel free to reach out.

Southern California home prices jump and sales fall

Southern California home prices jumped in December, reaching its highest peak in nine years. On the flip side, lower demand has lead to a decrease in actual sales. What does this mean for homeowners looking to sell?

Check out the full article here.

Zillow CEO Overpaid for His LA Home, According to Zillow

LA Curbed reports "Back in April, Zillow CEO Spencer Rascoff shelled out just under $20 million for a six-bedroom mansion in Brentwood...even more surprising, his own company’s price estimator [Zestimate] suggests Rascoff overpaid a bit for the nearly 13,000 square-foot home."