Beverly Grove, 90048

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Beverly Grove, 90048 Beverly Grove, 90048

Beverlywood, 90035

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Beverlywood, 90035   Beverlywood, 90035

Hancock Park, 90036

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Hancock Park, 90036 Hancock Park, 90036

Beverly Hills, 90211

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Beverly Hills, 90211 Beverly Hills, 90211

Has the Real Estate Market Peaked

businessman with mini house and US dollarsOne of the oddest things about this current housing market is the dwindling amount of supply.  For areas like Los Angeles and nationwide, total housing supply has been on a downward trajectory since 2010.  While an environment of rising home prices, less supply, and hungry buyers would lead you to believe that more home building would be occurring, not much of that has actually happened.Though the housing market is recovering nicely, it is not doing quite as well as some analysts had predicted. There has been no shortage of excuses offered as to why this is: the rise in interest rates, more stringent lending standards, the weather. However, we feel that there is one factor that is most responsible for curtailing the number of houses sold – the number of houses available for sale!

Inventory Levels are BELOW Historic Norms

In a recent economic forecast, Freddie Mac addressed this exact issue: “Including newly built homes in the inventory count, the total number of homes offered for sale relative to the number of households in the U.S. has been running at the lowest level in more than 30 years, as shown in the second exhibit. The relatively low for-sale inventory reflects several features of today’s market.” “A supply-constrained market (holding other factors constant) will result in a decline in the volume of sales and an increase in real transaction prices.”

NAR Report Confirms Inventory Constriction

History shows us that a balanced real estate market requires a six month supply of available housing inventory. The National Association of Realtors released their Existing Homes Sales Report last month. The report revealed that we are still only at a 5.5 month supply of homes for sale. We have not reached the 6 month mark in over two years. The recent increase in buyers now looking will again put a strain on this number. .

Bottom Line

While inventory levels remain below historic norms, it will remain a seller’s market. This being the case, if you are considering selling your home, now may be the time to list it for sale.

 

Luxury Loans Surge To Record Levels

Home buying

Banks are handing out mortgages of as much as $10 million to the wealthy in record numbers while first-time home buyers struggle to get loans. Wealthy borrowers are having an easier time getting a mortgage, with banks issuing a record number of mortgages in excess of $1 million while continuing to keep lending tight for first-time home buyers, Bloomberg News reports.

These high-net-worth borrowers do act differently than first-time buyers, who borrow because they have

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Los Angeles Real Estate Surging

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There is very little doubt that the real estate market is on much firmer ground that it was five years ago. Along the California coast, it’s not merely challenging to find reasonably priced real estate – it’s nearly impossible. Home values are rapidly rising and a confluence of factors will likely continue to drive the market even higher. Pent-up demand, job growth and still-slow mortgage rates continue to put pressure on home prices. The median

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Summer Home Buyers Should Be Happy

There’s been a dramatic change in the housing market lately, and it’s almost all good news for homebuyers. Home shoppers may find there’s good reason to breathe a sigh of relief this summer.. They pointed to higher inventories, fewer bidding wars, and slowing home prices as welcoming signs for home buyers this year.What we are seeing is homebuyers who have become more disciplined than before, still pouncing on the A+ homes in the best school

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West Hollywood Real Estate Market Update

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{Video} West Hollywood real estate market update gives insight to the current home seller statistics for todays market conditions, Inventory of existing homes have been on the rise. Closed transactions followed with a record number of homes going into escrow. Home prices are trending up, however time on market is trending higher as well. We are keeping an eye on mortgage interest rates and the affordability index. This housing market minute answers your question, How

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