Hello Valley Village Neighbors!
I read an interesting article yesterday, via yahoo news, titled "Southern California home sales are plunging. Prices haven't followed, yet"
Let's face it, newspapers sell copies, and get online viewership, with attention grabbing headlines. If you failed to read past the headline, you might think ominous things are imminent in our housing market.
While no one has a crystal ball, we do have data points that we can draw information from, step back, and look at ALL factors to understand the bigger picture.
Here's the gist...
The total volume of units sold (individual homes that sold) is down. Well of course they are down! For about 30 days no one had a clear answer on how and when we would show property. Everyone was frozen in place for a month. Now that viewing restrictions have been eases, while keeping several layers of safeguards in place, we can expect to see an increase of activity in the next month.
HOWEVER, the average sales price was actually up from the same time last year!
Furthermore the available inventory has gone down.
Interest rates are at historic lows and are projected to be so likely for the rest of 2020.
These key indicators suggest upwards pressure on home prices, not downwards pressure.
This is based on information that we have RIGHT NOW. If we experience a protracted period of high unemployment, this will begin to exert downwards pressure on home prices.
The best practice is to remain in touch with your local Valley Village Realtor (that would be me) and be sure that you are reading past the sensational headlines.
You can read the entire article here : https://finance.yahoo.com/news/southern-california-home-sales-set-201009739.html
For all of your real estate related questions, be it buying, selling, or leasing, I'm here to help!
LUKE ALLEN
Realtor® - ePRO® - PSA® - SFR®
Mobile: 310.497.7754
Email: luke.jonathan.allen@gmail.com
Website: LukeAllenRE.com
Facebook: facebook.com/LukeAllenRE/
Instagram: instagram.com/lukeallenre/
License#02059886
Coldwell Banker
12930 Ventura Blvd.
Studio City, CA 91604
