L.A. real estate news and insights.
Here is the longest active home on the market in Valencia... 335 days!
Asking price: $2,999,950
This French Country style home has 6 bed/6 bath, 5,560 sq. ft. of living space, & is on a 16,327 sq. ft. lot.
The home features a library, designer kitchen, butler’s pantry, smart house wiring, 2 staircases, and mountain/golf course views.
Text me if you want a tour at 818-445-7953.
Rising inflation is pressing on Americans across the economic spectrum with costs for groceries to gasoline increasing. In November, consumer prices increased by 6.8% compared to a year ago, the largest annual gain in the past 40 years.
Some of the highest increases occurred for energy, shelter, cars, and food, which comprise about 61% of consumer purchases and account for 81% of inflation over the past 12 months, MarketWatch reports.
Renters may be feeling the impact. Rents are up 3% and accelerating at about 5% annually, says Lawrence Yun, chief economist of the National Association of REALTORS®.
Also, heating bills are increasing; natural gas prices have jumped by 25%.
Yun also warns that the increase in inflation is a primary reason that mortgage rates will likely rise in 2022. The 30-year fixed-rate mortgage is predicted to reach 3.7% by the end of 2022. Rates averaged 3.10% last week, according to Freddie Mac.
“One aspect of inflation is that real estate has proven to be a good hedge,” Yun says.
As he explains in a recent statement:
“In the 1970s, a high inflationary period when [the Consumer Price Index] averaged 7.1% per year, home price gains outpaced inflation with a 9.9% gain. Even when interest rates soared in the 1980s and thereby crushed home sales, home prices still held up to consumer price inflation: 5.5% versus 5.6%. That’s because rents are soaring. Other decades also show similar patterns. Therefore, for those concerned about the loss in purchasing power of money and savings, be assured that real estate has proven to be a good hedge against inflation.”
Source: “Instant Reaction: Consumer Price Index, December 10, 2021,” National Association of REALTORS® Economists’ Outlook blog and “Inflation Is Running Rampant in the U.S.—Here’s Where It Is, and Isn’t,” MarketWatch (Dec. 11, 2021).
Here's an update on 2 "Hot Homes" I recently told you about.
Hot Home #1: Vestal Ave., Los Angeles
Asking price: $2,349,000
Sold price: $2,400,000
Hot Home #2: Acorn St., Chatsworth
Asking price: $1,399,000
Sold price: $1,500,000
Here is the longest active home on the market in the Hollywood Hills... 239 days!
Current asking price: $6,395,000
Original asking price: $6,750,000
The main home and 2 story guest house have a total of 6 bed/8 bath, 7,202 sq. ft. of living space, & is on a 29,927 sq. ft. lot.
The property is at the end of a cul-de-sac, has a courtyard with a fountain, and amazing jetliner views.
There are multiple seating areas, fruit trees, a sports court, and an Ozone infinity pool with a spa on the private grounds.
Text me if you want a tour at 818-445-7953.
The 30-year fixed-rate mortgage rose sharply this week, averaging 3.05%. That marks the highest average since April, according to Freddie Mac’s mortgage market survey.
Rates are expected to continue to rise. The higher they go, the less buyers there will be for your property.
"Hot Home” in Sherman Oaks.
Asking price: $2,179,000
This home has 4 bed/4 bath, 3,460 sq. ft. of living space, and is on a 5,400 sq. ft. lot.
The home features 20ft ceilings in the living room, stainless steel appliances in the kitchen, and a family room with access to the backyard.
There are privacy hedges and a patio outside which is perfect for al fresco dining.\
Text me if you want a tour at 818-445-7953.
The California median home price is forecast to rise 5.2 percent to $834,400 in 2022, following a projected 20.3 percent increase to $793,100 in 2021 from $659,400 in 2020.
An imbalance in demand and supply will continue to put upward pressure on prices, but higher interest rates and partial normalization of the mix of sales will likely curb median price growth.
Additionally, a shift in housing demand to more affordable areas, as the trend of remote working continues, will also keep prices in check and prevent the statewide median price from rising too fast in 2022.
Source: C.A.R.’s “2022 California Housing Market Forecast”
Here’s a closer look at some housing indicators from NAR's July housing report:
Days on the market: Properties typically remained on the market for 17 days in July, down from 22 days a year ago. Eighty-nine percent of homes sold in July were on the market for less than a month.
First-time buyers: First-time buyers comprised 30% of sales in July, down from 34% in July 2020.
All-cash buyers: All-cash sales accounted for 23% of transactions in July, up from 16% in July 2020. Individual investors or second-home buyers comprise the majority of cash sales.
They purchased 15% of homes in July, unchanged from the 15% seen in July 2020.
Off-market home in Pasadena available NOW!
This multi-level home has 4 bed/3 bath, 3,130 sq. ft. of living space, and is on a 25,483 sq. ft. lot.
The home, which is located near the Annandale Golf Course, features beautiful canyon views, and a wraparound patio and deck.
The master retreat along with the remainder of the bedrooms are on the lower level and all have awesome views. The home also features a 2 car garage and avocado/fruit trees.
Text me if you want a tour at 818-445-7953.
See all my off-market properties at OffMarketShowings.com.
Economists say the housing market isn’t getting overinflated. “We have strong conviction that we are not experiencing a bubble in U.S. housing,” Vishwanath Tirupattur, a Morgan Stanley strategist, wrote in a note to clients this week. Lawrence Yun, chief economist of the National Association of REALTORS®, agrees. He said: “This is not a bubble. It is simply lack of supply.
”However, the rapid rise in prices may be concerning to home shoppers. The median selling price for a home is up $35,000 compared to a year ago, which is the fastest-paced increase since 2006, Tirupattur said.
But this isn’t 2006. Housing inventories are low, credit remains tight, and lenders aren’t issuing risky loans at rates like they did back then. Product risk—such as from mortgages with introductory periods, teaser rates, or balloon payments—comprised about 40% of the mortgage market between 2004 to 2006. More recently, those factors are now at only 2% of the mortgage market, according to Morgan Stanley.
Also, the housing market has a record low number of homes available for sale. At the end of March, there were 1.07 million homes available for sale, according to NAR data. For comparison, during the housing bubble, in July 2007, there were more than four times that—4 million homes available for sale.
Here is the cheapest home sold this week in Chatsworth.
Asking price: $549,900
Selling price: $600,000
This Lake Manor property has two homes on it for the price of one.
The property has a total of 3 bed/3 baths, 1,089 combined sq. ft. of living space, and is on a 5,250 sq. ft. lot.
The 2 story main house has an upgraded kitchen, remodeled bathroom, dual pane windows, and treetop and hill views from two attached viewing decks.
The guest house is a studio with a kitchenette and full bath. Did the buyers get a good deal?
alsey lists her Sherman Oaks home for $2.795M.
This Midcentury Post and Beam home has 4 bed/2.5 baths, 2,425 sq. ft. of living space, and is on a 19,007sq. ft. lot.
This private double gated compound features drought-tolerant landscaping in front, floor-to-ceiling windows in every room, tongue and groove ceilings, and terrazzo floors.
The backyard has a large flat grassy yard and pool.
There is also a detached state-of-the-art recording studio.
Text me if you want a tour at 818-445-7953.
Ten percent of homeowners say they plan to list their home for sale this year, and more than a quarter—26%—say they plan to list within the next three years, according to a new survey from realtor.com.
“In a typical year, we see about 8% of the nation’s homes hit the market, and we're expecting about 25% more this year,” says George Ratiu, senior economist at realtor.com®.
“This signals that many homeowners who were wary to list during the pandemic are getting ready to do so, and this much-needed inventory—especially for starter homes—will begin to relieve buyers’ challenges in a very competitive market.”
Do you think home prices will go down because of this?
Showings are only available until Tuesday for this off-market property in Los Feliz!
This home has 3 beds and 2 1/2 baths, 1,846 sq. ft. of living space, and is on a 7,000 sq. ft. lot.
The home features original hardwood flooring, a fireplace in the living room, and a Jack & Jill bathroom between the 2 front bedrooms.
There are Fruit trees in the backyard and there is a large 2 car detached garage that has ADU potential.
The home is close to Griffith Park, shops, and tons of restaurants.
Text me if you want a tour at 818-445-7953.
Hot Home alert in the Lake Hollywood Knolls - The asking price is $1,500,000.
The home has 3 bed/2 baths, 1,713 sq. ft. of living space, and is on a 4,808 sq. ft. lot.
The property features high arched ceilings in the living room, a marble fireplace, stainless steel appliances in the kitchen along with a butler’s pantry, and the bathroom has a soaking tub and vanity.
The garage is now a large studio with a loft that would be perfect for an office or gym.
Text me if you want a tour at 818-445-7953.
