Market Update
Sales are down but prices have gone up!
Home sales fell double digits across Southern California in July. Last month sales of new and previously owned houses and condominiums in the six-county region dropped 11 percent from a year earlier to 21,705 properties, according to CoreLogic.
In Los Angeles County, sales fell 13 percent from a year earlier to 7,285 transactions and they were down 10 percent from June. The county had the region’s biggest sales drop.
Still, the median home price increased 8.5 percent from a year ago to $531,500 and it rose $1,500 from June. “The median price paid for a Southern California home in July held steady compared with June at a nine-year high,” said CoreLogic analyst Andrew LePage.
Home sales of $500,000 or more accounted for 45 percent July’s transactions, unchanged from June and up from 41 percent in July 2015. The June and July 2016 share of homes selling for $500,000 or more was the highest for any month since the credit crunch hit in August 2007 when it was 49 percent.
Twenty percent of buyers in July paid cash, the lowest level for any month since October 2008 when the cash sales share was 18 percent. Cash sales peaked in February 2013 at 37.5 percent, said CoreLogic.
- Courtesy of Gregory Wilcox
ADVICE FOR SELLERS - Properties on the Westside are still selling aggressively but properties in the Valley are starting to soften. As prices continue to climb, less and less buyers are able to afford the high cost of housing. This will hopefully change when more lenders are able to offer lower down payment options with good interest rates. Right now, the average buyer needs to bring atleast 20% down to purchase. Most buyers are able to cover the monthly payment, but many are feeling the pressure of not having enough money for a 20% down payment. This is still a sellers market with limited inventory so if you're thinking of selling your home, this would be a great time to consider putting your home on the market.
Properties that are remodeled and ready to move in typically sell the quickest and at the highest price if marketed aggressively and with the correct pricing strategy. Curb appeal has become a major want for buyers so make sure your landscaping is clean and beautiful. We have many inexpensive tips we can share with you to make your home look great! Minor changes that do not cost a lot of money will make your home standout.
ADVICE FOR BUYERS - Prices are at their all time highs in many areas. That's the bad news. The good news is that we are seeing the market starting to stabilize. Entry level properties in respective areas are still seeing multiple offers when the property is in move in condition. Interest rates are still low so if you find the right property at the right price, you can get a 30 year fixed loan for under 4% today.
Make sure you have your finances in order. If you are paying with all cash, bank statements is all you need. If you are getting a loan, make sure you are pre-approved. As a listing agent, we never look at offers that come in on our properties from buyers who do not have a pre-approval letter or proof of funds if going with all cash. Make sure you have yours ready to maximize your chances of getting the property you want.
If you are looking at entry level properties in your zip code, there will be a lot of competition. Try to focus on off market properties and expired listings to minimize your competition. Let us know what you are looking for and we can provide you with some off market and expired listings that may work.
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