(June was an amazing month for Westside home sales. As an owner, you saw prices rise and homes sit on the market for as little as a few hours. As a buyer, you saw a fast-paced sales cycle and the chance to grab up a home just as the market swung into high gear.
Here are a few May numbers to explain just how amazing Westside home sales were (June numbers will be available later this month):
- Single-family home sales were up 5.4 percent over April and 2.6 percent from May 2016
- Median home price sales were up 6.9% in the Los Angeles metro area year over year.
- Mortgage rates dropped to the lowest level since the election in November to land at 4.01%
- Low supply of homes for sale will continue to push housing prices higher with new listings statewide declining 12.4 percent from a year ago
- Median number of days to sell a single-family home dropped to 22.4, down 5 days since May of 2016.
- All homes on the C.A.R. list sold for asking price or higher during the months of April and May.
Rising Home Prices
As of the end of May, Median home prices in Los Angeles County are over $550,000. This puts the prices at the same level they were prior to the crash. Westside home sales have the same trend, with some areas seeing double-digit increases from May 2016 to May 2017:
- Brentwood: 60%
- Topanga: 36%
- Cheviot Hills: 36%
- Malibu Beach: 29%
- North Inglewood: 28%
- Marina Del Rey: 27%
- Westwood/Century City: 18%
- Culver City: 17%
- Playa Del Rey: 12%
Doesn’t Seem To Be a Repeat
Some people are worried that we are witnessing the beginning of another housing bubble burst due to the trends in Westside home sales. However, as I said in an earlier post, this does not seem to be the case. Just to reiterate, here are a few reasons I think we don’t have to worry:
- Although lending restrictions have eased up a bit, there are still great practices in place keeping those that cannot afford a home from obtaining a home loan.
- Rising home prices are corresponding to a better job market coupled with continued low mortgage rates.
- Prices are rising, but they are doing so at a slower steady pace overall, despite a few pockets on the Westside suggesting otherwise.
So, that’s the latest report. If you are buying a home on the Westside, now is the time. Interest rates are liable to go up and the prices for single-family homes will continue to rise as well. For those that are thinking of selling, what are you waiting for? Now is a great time for sellers. Feel free to give me a call for all your home buying and selling needs.