Burbank, CA Real Estate Market Report April 2008

All markets go through cycles, and Burbank is no exception.  For the last two years we knew that Burbank was experiencing a buyer's market and the question has always been "when is it going to hit bottom?".  My answer has always been the same, that we will know until two or three months AFTER the market is headed back up.

Despite what you may read or see in the media, things might be changing.  First, the Market Index for the month of April  hit 0.24, the highest since the mortgage meltdown last August.  There is a rule of thumb that you need three consecutive periods to plot a trend, and Burbank seems to qualify.  We are seeing multiple offers on well-priced properties, escrows opening in two to four weeks.

The other big question I am asked is what  is going to happen to home prices.  Buyers want them to return to 1992 levels, Sellers feel as if they are being robbed at gunpoint as they have seen their equity evaporate.

Using average sale prices it we have seen a shift from $665,795 in 2007  to $557,468, for a net change of -$108,327 or  a decline of 16.5%.  Due to the drop in entry level home sales, we need to confirm this change by looking at price per square foot.

The price per square foot has shown a similar trend, decreasing from $461 per square foot in April 2007 to $359 in 2008.  The average homes size only increased 112 square feet, reflecting the decline in the sales of smaller, entry-level homes.

Volume is increasing, if I were buying I'd be looking very hard  at purchasing a property sooner than later.

For help buying or selling contact me Keith@BeautifulBurbankHomes.com or 1-888-284-2056 toll free.

Data from ITech MLS has not been verified, is not guaranteed, and is subject to change.