Local Market Stats – September 2018 Figures
Comparing September’s numbers to months past shows a trend toward an equalizing market. We’ve been in a strong seller’s market for some time now, with this past year having been quite difficult for home buyers.
While we remain in a seller’s market (less than a 6 month supply of homes), it is softening. Looking at the chart below, you’ll see many of our cities showing a 3-4-month supply of homes. This past spring we barely had two months’ worth.
Many are anticipating a housing crisis such as we experienced in 2008. It’s important to keep in mind that the 2008 crash occurred due to issues in the mortgage arena. Lending standards are much more stringent today than they were during the run-up before the recession.
What about interest rates? “Some consumers may be thinking that because mortgage rates are higher than they were a year ago, maybe I should just wait until rates fall down again,” said NAR’s Chief Economist Lawrence Yun in a recent speech. “Well, they will be waiting forever.”
If you’ve been waiting to buy a home, you may want to act now. A shortage of available homes on the market means prices are likely to keep going up. And a lack of affordable rental inventory means rents are expected to rise, as well.
If you buy now, you will benefit from appreciating property values while locking in an historically-low interest rate on your mortgage. Waiting to buy could mean paying more for your home as prices increase and paying higher interest on your mortgage as rates continue to rise.
|CITY||September Average Sales Price||Sept. Ave. Days on Market||Total # of Sales – September||Total # of Sales – YTD||Year over Year Appreciation||Active Listings||Months of Supply|
|Baldwin Park||$ 468,233||28||27||229||11.7%||79||2.9|
|Diamond Bar||$ 688,832||42||42||417||4.8%||262||6.2|
|Hacienda Heights||$ 612,430||36||30||314||8.9%||121||4.0|
|La Puente||$ 497,771||24||35||434||9.8%||112||3.2|
|La Verne||$ 697,021||39||24||224||7.1%||64||2.7|
|Rancho Cucamonga||$ 584,581||33||141||1342||8.5%||441||3.1|
|Rowland Heights||$ 681,307||35||20||175||2.7%||85||4.3|
|San Dimas||$ 644,289||31||19||251||6.1%||84||4.4|
|West Covina||$ 591,280||29||51||539||7.1%||181||3.5|
And if you’re in the market to sell your home, there’s no need to wait any longer. Prices have begun to stabilize, and rising interest rates could decrease the number of available buyers for your home. While the current lack of inventory is generally preferred by sellers because it means less competition, a combination of high prices and rising interest rates has narrowed the pool of potential buyers who can afford to enter the market. What does this mean? Sellers should seek out real estate agents who utilize technologically-advanced marketing tactics to reach qualified buyers in their area. If you’ve been considering selling, acting now would allow you to take advantage of this strong seller’s market before it levels out.
Mary Anglin, United Real Estate Los Angeles ~ (626) 290-1250 ~ Follow me on YouTube at http://bit.ly/MaryAnglinYouTubeS