A total of 414 single-family homes and 133 condominiums changed owners in the San Fernando Valley during November, down 13.8 percent and 26.1 percent, respectively, even as the number of active listings posted the December 20
With pendingsales that are waiting for escrow to close off 18.4 percent from a year ago, 2018 is on track to end with total single-family home sales throughout the Valley down by more than 8 percent, the Association’s statistics indicate.
Through November, local condominium sales were tracking 18.7 percent lower than 2017.
“There are fewer competitors out there, interest rates have fallen recently, prices are negotiable, sellers seem more flexible, and inventory is rising: Sounds like a great time for serious homebuyers to get busy,” said Gary Washburn, the 2018 Association president.
“You’ll still bump into multiple offers,” he said, “but not as many as just a short while ago. A purchase is possible!”
The Association reported the median price—meaning half the sales were lower priced and half higher—of homes sold during November at $660,000, down 2.2 percent from a year ago.
The median price of condominiums was $426,500, up 2.8 percent compared to November 2017.
Both homes and condos recorded record-high median prices this year: the home record of $708,000 came in May and again in August; while the condo record median price of $449,000 was established in July and August.
“Conditions are more favorable than earlier in the year,” said Tim Johnson, the Association’s chief executive officer, “yet some buyers are hesitating, waiting for a sign about the direction of the economy.
“Yet buyers who are in actively house hunting now understand that this is a window of opportunity,” he said. “Current buyers realize that they have a chance to snag a lower interest rate. Plus, slower prices increases eases some of the pressure to act quickly, and the added bonus is that they have more options as the inventory slowly expands.”
There were 1,509 active listings at the end of November. That was up 40.4 percent from a year ago, which was the largest percentage increase since 2014.
At the current pace of sales, the active listings represented a 2.8-month supply. November was the fifth consecutive month above the 2.0-month benchmark.
Any increase in the inventory is welcome, but the 30-year historical average calls for a 5.9-month supply to yield a market where neither buyer nor seller has an advantage.
Even with the slowdown in sales, distressed sales have fallen off the radar.
Of the 747 combined home and condo escrows closed during November, 96.9 percent were standard sales involving traditional buyers and seller.
Seven sales were foreclosure related, for a 1.3 percent market share, while there were three, or 0.5 percent, short sales, where a lender accepts a purchase price lower than an outstanding home loan.
The Southland Regional Association of REALTORS® is a local trade association with more than 10,300 members serving the San Fernando and Santa Clarita Valleys. SRAR is one of the largest local associations in the nation.
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