Summer 2013 housing activity beats last year’s numbers handily

The housing activity over the Summer has been nothing short of remarkable; proving yet again that when it comes to real estate activity, national numbers might make the news, but they’re not always very relevant to us here in specific neighborhoods in the Valley.

Housing slowdown; what housing slowdown?

Compared to activity during the Summer of 2012, the average sale price of homes in our immediate area has increased and incredible 23%! Imagine that. Given all the local and national volatility of just a couple of years ago, the average sale prices of homes in our market, have increased $165,000, from $729,000, to $894,000.

When it comes to the question “How?,” the feedback I have received directly from both sellers and buyers, usually relates to interest rates; and the “Why?,” to confidence. The interest rates item makes sense, because when the mortgage money is cheaper, and people can access it, they will do just that. However, the interest rates last Summer where actually 25% lower than they were this Summer. Despite that increase of nearly a full percentage point, MarinoRealEstatebuyers were out in droves; and those numbers of home seekers helped create an inventory shortage that pushed prices up. Sellers did not keep pace with buyers; but those that did, enjoyed the rewards of the increases in our local market.

And it’s still going on. Why?— that’s confidence element.

Nearly 500 homes changed hands between June 1st and August 31 of this year in Tarzana, Encino, Lake Balboa, and Sherman Oaks. What’s interesting is the pace from last Summer  was nearly as hot; just 10% fewer homes sold during the same time period in 2012. But this Summer, they were flying off the shelves. This year, homes were selling in just over six weeks— last Summer, it was taking more than ten weeks. Considering the typical escrow runs about four weeks; that means homes were put on the market and sold in 14 days or less.  That is a brisk pace. Confidence in the market is what’s behind that.

Further proof… the dramatic drop in distressed home sales since last Summer. During the Summer of 2012, our neighborhoods accounted for nearly 120 distressed property sales; whether they were foreclosures, pre-foreclosures, short sales, or auctioned properties. This Summer— just 39. A 67% drop in distressed sales means fewer speculators in the market, and more equity sales that helped make room for new home owners, and, helped those home owners who lost a ton of equity in recent years, to recover.

What lies ahead we will see; interest rates are up, but they are holding. What we do know, however, is the Fall of 2012 was even hotter than the Summer of that year; so if you’re considering making any plans… (Mark Marino)


Categories: LATEST NEWS

Author:Marino Real Estate

Specializing in residential and commercial real estate sales for the better part of a decade, my approach to real estate involves establishing a trust with my clients, that contributes to the ultimate success of our transaction. Whether it is a personal residence, or an investment property, I am committed to negotiating the best deal for my clients, and have enjoyed a history of meeting the important and unique needs of the many clients which have entrusted me with thier real estate goals.

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