Here's a quote I took from an article from the Southland Regional Association of Realtors, September 2008 Realtor Report:
"There were 6,950 active listings throughout the San Fernando Valley at the end of July, down 3.4 percent from a year ago. Of that total, single-family homes accounted for 75 percent of the active listings.
At the current pace of sales, the active inventory represents a 7.5-month supply - slightly higher than the 5- to 6-month supply deemed to represent a balanced market.
By comparison, the inventory during the recession of the 1990s hit a record high of 14,976 in July 1992 and the inventory compared to pace of sales was three-times higher at a 23-month supply.
Contrary to an inaccurate public perception, the active inventory in the San Fernando Valley has been trending lower since November 2007 when it stood at 7,505."
I used to think that prices had a little further drop to go, but now that the new sales data has been released I'm starting to think that pricing may increase slightly next year and that inventory may stay flat rather than increase as buyer's who were unable to get their offers accepted in multiple offer situations begin to offer more for the next property they find that they like. It's a hard call, but I really think that now is the time to buy. Dang! I wish I signed a six-month lease for the rental I live in instead of a 1 year. Hopefully there will be something I like at a good price next year.
To my readers and clients: What do you think? Do you think market is positioned for a rebound? Feel free to post comments by clicking the link below.
For more information please visit www.MarkSellsLA.com
Written by Mark Gonzales Copyright 2008
Mark Gonzales, Realtor, real estate agent specializing in marketing and selling residential homes, condos, and commercial real estate sales in Los Angeles, San Fernando Valley, Woodland Hills, Sherman Oaks, Studio City, Encino, Tarzana, Calabasas. Please visit www.MarkSellsLA.com for more information.
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