Higher Inventory, Lower Home Prices
Home prices are falling and this may be a sign of a friendlier time for those
seeking to buy property. What’s behind this trend is a rise in inventory, which has
taken the pressure off buyers who were rushing to bid above the asking price of
homes. With a lowered sense of urgency from buyers, less homes are flying off the
shelf, so to speak. For instance, 4,206 homes were sold this past February,
resulting in a drop of 12% from 2018.
One month earlier in January, 21,357 homes were put on sale all over the Los Angeles metropolitan area, which is an increase of 30% from last year. With more homes on the market, those selling will be receiving less competitive bids since buyers have more options now. Consequently, buyers will have the confidence of making offers below the asking price due to less competition. This decrease in competition was seen recently in LA, where 26% of homes were sold above the asking price in December of 2018, down 9% from the entire year of 2017.
Prices for homes in Southern California hardly rose. One can easily attribute this to the generally unaffordable Los Angeles housing market. However, mortgage rates have continued to fall, reaching downwards of 4.2% for a fixed rate. First-time buyers may consider bidding on a home since their monthly mortgage payment will be reduced.
If you need any assistance with purchasing
or selling your next home I would love to help
you! Feel free to contact me via my contact form :)
- Monica Singer