6.5% of US homes for sale had a price drop
A recent report from Redfin said more home sellers are dropping their asking price. During the four weeks ending September 24, 6.5% of US homes for sale had a price drop, an uptick from 5.8% in August.
"It's still tough to win a home for under asking price, but sellers have come to terms with the fact that 7%-plus mortgage rates are giving buyers cold feet and that homes aren't as likely to attract multiple offers," Redfin said.
97,197 Southern California homes sold during the first seven months of 2023, the lowest January-to-July total on record.
This year's sales tally is 41% lower than during the pandemic boom two years ago.
Source: CoreLogic
LA County home median sale price jumps $30K.
LA County home median sale price jumps $30,000 from July to August.
U.S. Home Purchase Applications Hit 27 Year Low
Here is another sign that there are not enough homes for sale on the market.
If we had more housing inventory, we would not have this issue. I am still seeing strong buyer demand out in the field.
Revised predictions for what will happen to home prices by the end of 2023:
The original 2023 forecasts (released in late 2022) for all of these organizations called for home prices to fall.
Looks like they have all changed their tune.
Zillow said... Redfin said... Realtor.com said...
Keep in mind Zillow recently lost $880,000,000 on their failed home-flipping business... they are not the best at predicting market trends.
Where do you think home prices will go by the end of 2023?
Millennials Are Losing the Home-Buying Edge to Baby Boomers
Baby Boomers have officially taken over! They now represent 39% of all home purchases.
Millennials have dropped down to 28% of home purchases.
Median home listed in LA will soon cost more than $1M — up 30% in 5 years
The already dizzying Los Angeles housing market is poised to reach new heights, as the latest data from Zillow suggest that the median home listed in the city will soon cost more than $1 million.
As of June 30, the figure was $975,333, more than a 30% increase from five years prior. Statewide, six other cities were even more expensive and had already crossed the million-dollar mark: San Jose, Santa Maria, Santa Cruz, Salinas and San Francisco.
In Santa Cruz and San Diego — the major markets with the largest increases — median listing prices were up more than 40% over the last five years.
Source: Los Angeles Times - By Terry Castleman
Housing market stuck in biggest freeze in a decade
Actor/Writer strike is affecting the LA real estate market
When the Writers Guild of America, a relatively small union, went on strike in May, I immediately saw an impact with my showbiz clients who were looking to buy a house. Actors are now also on strike. They command a big presence in Los Angeles. It has 160,000 members. Here is how I am currently seeing the market being affected and how it may potentially be affected in the future:
1) In order to get a home loan, my clients in the entertainment business have to show a paystub dated within the last 30 days. Writers, and those affected by the writer strike, will not be able to show a paystub from their normal writing job for the last 30 days. No paystub means no home loan. As soon as the strike is over, and they get a paycheck, they should qualify to get a mortgage again.
2) If writers, actors, and everyone else affected by these strikes are no longer getting paid, and can't afford to pay their mortgages, will they be forced to sell their homes? Will we see a big jump in LA's for sale housing inventory because of this? It is too early to tell, but this is definitely something to keep an eye on.
I'm hoping the strikes end soon and everyone can happily get back to work!
New listings in June take a big year-over-year hit in LA County
There was about a 41% drop year-over-year for active listings in LA county (2,096 listings in June 2023 versus 3,531 listings in June 2022).
Source: Douglas Elliman Report
Check out the jaw-dropping sale price of the Alhambra "under the bridge" property!
Bridge home in Alhambra has officially sold!
1 bed/1 bath, 462 sq ft of living space.
Asking price: $249,950
Selling price: $430,000 all cash
CA home prices keep rising
Los Angeles metro area average home price up $25,000 from April 2023 to May 2023.
1/3 of home buyers are paying in cash – who are they?
Redfin found that 33.4% of buyers opted for an all-cash deal in April, the highest that mark has been since 2014.
Baby Boomers make up the largest share of those buyers with more than half of people age 58 to 76 paying in all-cash.
“Homeowners have really been the winners in that scenario … they have equity and are able to make a move with paying all cash,” Jessica Lautz, National Association of Realtors deputy chief economist and vice president of research, told Nexstar.
Another trend that stood out in the data – single women are the most likely to pay in all-cash, Lautz found.
28% single women
27% married couples
20% single men
20% unmarried couples
When it comes to the race of all-cash buyers, Lautz found that 23% were white/Caucasian, 15% Black/African-American, 8% Asian/Pacific Islander, and 8% Hispanic/Latino.