Local Market Report – May 2019
The experts are predicting a hot housing market this summer. This positive outlook is based primarily on low mortgage rates (below 4%), low unemployment (3.6% in April), and wage growth (3.2% from the previous April).
In viewing the city-by-city numbers in the chart below, we can see that while our homes are still appreciating, the rate has definitely slowed. The growth of the previous few years was at an unusually high rate, and it seems that what we’re seeing now is a correction, or a ‘return to normalcy’.
As we can see from the chart, with the exception of La Puente and Montebello, each of our cities has more homes available than this time last year. We’re also experiencing a little more time on the market from list date to contract date. The months supply of homes is also higher, though the majority of our cities do remain in a market favoring sellers.
What does all this mean?
Buyers – while you may still have competition from other buyers, there are more homes to choose from. Make sure you have all your paperwork in order before even looking at homes so that you’ll be ready to get an offer in quickly.
Sellers – you need to think about the competition more seriously than you had to in the past couple of years. Make sure your home is in tiptop shape and make sure your agent is pricing correctly, using professional photography and marketing strongly, especially online. This is crucial since the largest segment of buyers are Millennials, who tend to be tech-savvy and beginning their home-searches online.
|A “balanced market” is a 6 month supply of homes. A “sellers’ market” is anything less than that, while a “buyers’ market” is any that has more than 6 month supply.|
|CITY||May Average Sales Price||Year over Year Appreciation||May Ave. Days on Market||Total # of Sales – May||Total # of Sales – YTD||Active Listings||Months of Supply||Previous Yr Supply Change|
By all means, contact me if you have any questions or would like further information on your city, or your neighborhood or home specifically.
For those of you who may have friends or relatives outside our area who need a Realtor, I’m happy to do some behind the scenes screening and recommend a good agent or two to them. No cost to you or your friends, of course.
As always, find me at 626-290-1250 or MaryAnglin.Realtor@gmail.com