Hello Fellow Valley Villagers,
Can you believe that the year is half over already? Time sure is flying now that things are fully reopened and people are making up for lost time getting back to living a full life! A list of July events in and around LA can be downloaded here: https://bit.ly/LAEvents72021
Enclosed with my letter is the 2nd quarter recap of sales for 2021 in VALLEY VILLAGE along with the ALTOS market report to help you better understand the current market conditions. This can be very data-dense, but I am happy to set up a time for us to discuss it thoroughly.
In June, the Biden administration announced that the foreclosure moratorium would be ending. This has many people curious to know if THIS will finally be the needle that bursts the housing “bubble”. We need to look at some key indicators to know for sure.
To begin, we have to understand that consumer demand is the driving force behind the health of the housing market. The indicators for demand, using national data, are 1) median selling price, 2) the percent of listings taking a price reduction, and 3) days on market (DOM).
MEDIAN PRICE % REDUCED DOM
2020 - $350K 2020 – 24.2% 2020 – 70 Days
2021 - $399K 2021 – 19.2% 2021 – 21 Days
As you can see from each of the demand metrics, the market is strengthening, not weakening. We would need to triple inventory levels to reach “normal” levels. The 365K homes nationally in foreclosure jeopardy are not sufficient to change the inventory levels in a meaningful way. Add the fact that in LA County, we are far below the national average of properties in forbearance. This all points to a continued strong seller’s market for us! You can see the full breakdown of this data here: https://bit.ly/DemandData
Please remember that if you have any buying, selling, or leasing questions, I am here to serve our community as your neighbor and fellow Valley Village homeowner!
Warmest regards,
Luke
