Local Market Report – September 2019
We’ve been experiencing the housing market re-balancing itself over the last few months, and this report on last month’s activity shows little difference. Homes are still selling, and fairly quickly in comparison to many areas of the country. We still have a limited supply of homes on the market, keeping most of our area in a market favoring sellers. Arcadia & Walnut are the exceptions, being in a buyer’s market, while Diamond Bar and Rowland Heights are in a fairly balanced market. There’s quite a variance in year-over-year appreciation, as you can see by the chart below.
But What About The “Recession”?
Some people who would like to move are staying put “for fear of a recession”. This is understandable as the gravity of the 2008 crash, and how it affected the real estate market is impossible to forget. But what we may not be remembering is that there were many economic downturns that resulted in appreciated home values. Of the last five recessions in U.S. history, three of them saw increases. Two of those three saw prices appreciate faster than the historical average. For the two where prices decreased, one of them was by less than 2% and the other was because the housing market caused the recession in the first place. Historically, recessions are not caused by housing alone. The important thing to understand is that market conditions are not the same as in 2008. This is the biggest indicator that we won’t see a crash like the one a decade ago. Experts project that home prices will continue to appreciate for the next 2-5 years. Sales are also projected to increase in 2020.
So What Does This Mean For Me?
♦ What do we need to do now if we’re buying or selling a home? Be aware that the market is very different than it was two years ago, or even just last year.
- For sellers, pricing your home correctly is crucial. Over-pricing will not work today – not that it was ever a good idea – but the results of doing so in today’s market will most likely cause a non-sale. And hire a Realtor who’s marketing is excellent and in tune with the times.
- Buyers, have all your paperwork prepared and have your pre-approval letter from your lender on hand. When you find the house you love, get that offer in quickly, with all paperwork and your earnest money deposit ready to go. Enlist a Realtor who will guide you and negotiate for you.
While the market’s changing and things might look a little uncertain to you, don’t allow that to impede your dreams. Are you ready to move on with your life? Do it!
If you’re considering buying or selling and wondering what your best options are, give me a call. We can review your situation and see what the best course might be.
|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||September Average Sales Price||Year over Year Appreciation||September Ave. Days on Market||Total # of Sales – September||Total # of Sales – YTD||Active Listings||Months of Supply||Previous Yr Supply Change|
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. Learn more here.
As always, find me at 626-290-1250 or MaryAnglin.Realtor@gmail.com