A Look at the Local and California Real Estate Market
Statewide and locally, October’s real estate market showed healthy increases in median prices. Inventory remains extremely low, both statewide and in our local market.
Statewide, the median price remained above the $500,000 mark for the seventh straight month, with little signs of slowing down. The median price of an existing, single-family detached home in California was up 1.2% in October to $513,520 from $507,260 in September.
Since 2010, home price statewide have typically declined between September and October. The monthly price gain is an indication that demand remains unseasonably strong.
“While this month’s sales and price gains are encouraging, the market continues to experience a supply issue that won’t abate anytime soon,” said CAR Vice President and Chief Economist Leslie Appleton-Young. ” A shortage of new listings remains a threat to home sales in the short run, and with available inventory below normal levels, the dearth of listings suggests that the market will remain tight over the near term. ”
Los Angeles County Sales Prices
The median home price for a single family, detached home in Los Angeles County in October 2016 was $580,000, up 8 percent October 2015.
Orange County Sales Prices
The median home price in Orange County in October 2016 for a single family detached home was $760,000, a 7 percent increase from October 2015.
The number of available homes for sale remains very low in many areas. In Orange County, as of October 2016, there was a 3.3 month supply of homes for sale, while in Los Angeles, while in Los Angeles County, there was a 3.1 month supply. Both numbers are down from the same time last year. The lack of inventory means we are in a “seller’s market,” giving sellers the upper hand in negotiating based on supply and demand.
Some communities show an even lower level of inventory. In Long Beach, for example, October 2016 numbers reflected a 2.4 month supply of homes for sale. In Lakewood, there was a 1.7 month supply of homes, which is 10.5% less than it was at the same time last year.
Days on Market
With fewer homes on the market and a persistently high demand, the time it takes to sell a home has declined. In Los Angeles County, for example, Days on Market for October 2016 was 35, a 23.9% decline from the same time last year. And in Orange County, the number was 48, up slightly from September 2016 but still 15.8 percent less than it was in October 2015.
Impact of Interest Rates
Since the election, interest rates have increased significantly, causing concern from some that the trend could put the brakes on the housing recovery. Home prices have been rising dramatically over the past few months, in part due to the lack of inventory and high demand. What the longterm trend will look like and how that will impact the housing market will depend to some extent on what direction the Trump administration takes and how the market perceives those changes.
What Does This Mean For Your Home’s Value?
There a number of factors that could significantly impact the value of your home over the coming months and years. Click here to see what your home’s current value is or fill out the contact form below and we’d be happy to provide you with a comprehensive, personalized report.