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Los Angeles Real Estate Market Update for Oct ’15
The statistics and figures noted in this article were obtained through the MLS and AccuFlip.com, and are for Los Angeles single family residences.
The Los Angeles real estate market is just moving along. Buyers are buying and sellers are selling. Home prices over the last year have been bouncing along with some months showing positive change from the previous month and some with negative change. This is not surprising though… We have a an economy that is certainly not in bad shape and continues to get better, great interest rates and a market that is at the upper limit of affordability, which is keeping prices in check. Prices took off in 2013, showing almost 30% year over year appreciation. Fortunately, this out of control rise in home prices was curbed in early 2014, keeping us out of a bubble, which we were heading for. So, what’s to come? Let’s take a look at the stats from last month first.
The median sale price came in at $537,000 in October. This is down 2.6% from September and up 4.25% from October 2014. Sales volume was at 4207, up 3.7% from September and more importantly, up 7.3% from last year. Volume is probably the most important statistic when forecasting. Active inventory is down to 10,328 from 10,883 last month, but Pending sales are up, 8122 currently pending. Last month was at 7419. What happens when inventory (supply) drops and sales orders (demand) increases?
We are heading into the seasonal winter lull, when markets tend to dip. The dip is artificial, due to the increase in the ratio of distressed sales to standard sales and the deeper discounts to those distressed sales. Currently, demand is up and supply is down, so we should see an increase in prices. Also, the SI index is down to the sustainable threshold, 8.73 (which is good), this means that we are back in the realm of affordability. These indicators do point to a bump in prices in the next few months, but it will be interesting to see what happens. Will the discounts to distressed properties be deep enough to show negative numbers, probably. I’m more interested to see the market activity come March.
All in all, it’s a good time to buy. The market does not show any signs of a pending correction. I think we will have a nice long healthy market over the next few years. If you want to flip properties, now is a great time to buy a property to flip. Just make sure you know what you’re doing. If you don’t know what you’re doing, contact me, I can help.
Questions or comments? Leave a message below or email me at [email protected]
Sponsored by www.goldenstatemoldinspections.com
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By Bret Pfeifer: Real Estate Broker and Real Estate InvestorThe statistics and figures noted in this article were obtained through the MLS and AccuFlip.com, and are for Los Angeles single family residences.
The Los Angeles real estate market is just moving along. Buyers are buying and sellers are selling. Home prices over the last year have been bouncing along with some months showing positive change from the previous month and some with negative change. This is not surprising though… We have a an economy that is certainly not in bad shape and continues to get better, great interest rates and a market that is at the upper limit of affordability, which is keeping prices in check. Prices took off in 2013, showing almost 30% year over year appreciation. Fortunately, this out of control rise in home prices was curbed in early 2014, keeping us out of a bubble, which we were heading for. So, what’s to come? Let’s take a look at the stats from last month first.
The median sale price came in at $537,000 in October. This is down 2.6% from September and up 4.25% from October 2014. Sales volume was at 4207, up 3.7% from September and more importantly, up 7.3% from last year. Volume is probably the most important statistic when forecasting. Active inventory is down to 10,328 from 10,883 last month, but Pending sales are up, 8122 currently pending. Last month was at 7419. What happens when inventory (supply) drops and sales orders (demand) increases?
We are heading into the seasonal winter lull, when markets tend to dip. The dip is artificial, due to the increase in the ratio of distressed sales to standard sales and the deeper discounts to those distressed sales. Currently, demand is up and supply is down, so we should see an increase in prices. Also, the SI index is down to the sustainable threshold, 8.73 (which is good), this means that we are back in the realm of affordability. These indicators do point to a bump in prices in the next few months, but it will be interesting to see what happens. Will the discounts to distressed properties be deep enough to show negative numbers, probably. I’m more interested to see the market activity come March.
All in all, it’s a good time to buy. The market does not show any signs of a pending correction. I think we will have a nice long healthy market over the next few years. If you want to flip properties, now is a great time to buy a property to flip. Just make sure you know what you’re doing. If you don’t know what you’re doing, contact me, I can help.
Questions or comments? Leave a message below or email me at [email protected]
Sponsored by www.goldenstatemoldinspections.com