Days on market

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

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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: Average days on market for homes sold in 2017 and what it means for sellers.

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Having the right expectations can mean the difference between closing the best deal and settling for a lower price. This is especially true when it comes to optimal days on market for residential listings.

In this post, we analyzed about 2700 deals closed in the LA area for 2017 to give sellers a view into what they can expect when they enter the playing field.

Key takeaways:

  • About 2700 residential property deals (from single family homes to condos & town houses) have closed in 2017 year-to-date (**see areas below).
  • On average, detached single family homes are on the market for 59 days before selling. On average, condos & town homes are on the market for 54 days before selling. Median days on market are notably much lower. The median days on market for detached single family homes is 42 and for condos & town homes 40.
  • When average is higher than median, this means a small group of homes are staying on the market much longer and pulling the averages up. In reality, the most realistic expectation for most sellers is around 40-42 days, or just over a month.
  • For condos and town houses, 40% of homes sell within the first month of being listed. The same is true for detached single family homes. So another reality is that most will be waiting more than a month.
  • When we look at days on market by home size, numbers change significantly. Homes under 1800 square feet can expect to sell within the first 2 months, but above 1800 square feet we see numbers go up significantly above 2 months.
  • Size plays a big role in how long you can expect for your home to sit in the market in LA.

**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, sellers are facing days on market upwards of a month on average for both detached single family homes and condos. This is mostly true for homes below 1800 square feet. So if you fall into this category, it is not unfair to expect this type of performance from your realtor.

Second, larger homes are sitting on the market much longer. Homes above 1800 square feet can expect upwards of 2 months sitting on the market. Thus, folks with larger homes and their realtors have more work to do in terms of finding and competing for the right buyers. Based on this early data, larger homes and the luxury market are facing the most headwinds.

All in all, 2017 is shaping up to be what I call a year for strategic patience. But if you can't afford to wait and don't want to put your future on hold (nor should you!), there are ways to beat these numbers and we have proven strategies to do so.

Interested in learning more? Feel free to reach out and get a better idea of what we can do for you. You can also try our free market analysis, and we'll provide something tailored just for you to get you started on your selling journey.