What’s really going on in the market today.
You hear all types of reports. The market is up the market is dropping. It’s a buyer’s market it’s a seller’s market. If it’s on Zillow it must be true, NO. So I did some homework and here is what I have seen trending across the Foothills.
– Home Prices are not down.
– List Prices are being reduced.
– Market times have increased.
Inventory has remained the same for most markets perhaps a slight increase in a few.
So what does all of this mean? First, off everyone needs to have a better perspective or better yet, understanding of the market, this includes real estate agents. In many of our markets, the days of 10 offers on a property and postcards touting ” in escrow in 3 days”, “sold over asking” may become less and less. So what this means is agents will need to work harder, smarter and become much more pro-active to secure a top dollar price for their sellers. What you are seeing right now are price reductions. Why? Many times it is the only tool the agent has. Many sellers are still reaching and pushing their asking price and in this adjusted market, sellers have to be very careful not to push to high.
I firmly believe that no matter what you price a home for sooner or later there will be a buyer willing to pay a fair market value. Yes, this will take time and it takes an agent that is willing to work for you day in and day out.
I have been selling real estate for 30+ years. I have seen every market. What’s happening in the market is not devastating by any stretch of the imagination. I’ve seen this before and I know what it takes to continue to get sellers top dollar as well as navigate buyer’s concerns.
Let’s discuss how you feel this market may be affecting your plans to buy or sell.
The housing market is beginning to shift in favor of buyers. In recent months, a number of key indicators have revealed that the market is slowing down, and one real estate executive agrees.
The housing market “is starting to slow a little bit,” said Zillow CEO Spencer Rascoff at the Yahoo Finance All Markets Summit Thursday. According to Rascoff, home values were up 9% in the past 12 months. However, in the next 12 months values are forecast to rise by 6%-7%, Rascoff said, adding that the levels are still at an “incredibly high rate of appreciation.”
The latest S&P CoreLogic Case-Shiller national home price index results won’t be out until Sept. 25, but the most recent available results also reveal the market cooling down. The index recorded a 6.2% annual gain in June, down from 6.4% a month earlier, and the 20-City Composite posted a 6.3% annual gain — the slowest monthly increase in two years for the 20-City index.
Meanwhile, the National Association of Realtors reported Thursday morning that existing home sales have fallen 1.5% during the past 12 months. Last month, there were 1.92 million existing homes for sale, up from 1.87 million a year ago.
No signs of a crash
More than half of the country’s homes are worth more than they were at peak of 2007-2008, said Rascoff. But that should not be concerning. Rascoff said Zillow data does not forecast that we are headed for a crash but it does indicate a slowdown — that may be good news if you’re looking to purchase a home. By 2020, we’ll start to see a shift from a sellers’ market to a buyers’ market, said Rascoff, adding that for the past five years it was better to be a seller.
In fact, we’re already starting to see things change in certain markets like New York City and Los Angeles. According to Rascoff, in Los Angeles we had 42 months of declining inventory and last month inventory was up 13% year-over-year.
Rascoff attributes the slowed activity in these markets to a reduction of interest from foreign buyers.
“The dollar is strong — that’s made U.S. real estate more expensive,” he said. “Part of it is the anti-immigrant political tone which has caused Chinese buyers to look to Europe and other parts of the world instead of U.S. — and part of it is prices have gotten so out of whack because home values appreciate so much that other asset classes start to look attractive.”
STOP LISTENING TO ALL THAT CHATTER
Robbyn Battles selling real estate in the Foothills of La Canada-Flintridge, La Crescenta, Montrose, Sunland-Tujunga, Shadow Hills, Altadena, and all the surrounding neighborhoods for over 30 years.
Robbyn Battles • Battles Real Estate • JohnHart Real Estate • “Real Estate Redefined” 1420 Foothill Blvd. La Canada-Flintridge CA 91011, 818-388-1631