Time to examine the La Canada Market Report for February. It is the question on most homeowner’s minds- how is the real estate market?
Teles Properties has a entire research department dedicated to detailed market research in our local markets. This is very different from what you might read or see in the mass media.
La Canada saw the same drop in median price that Glendale saw in February. This is disappointing since La Canada saw a healthy gain in median price in January. However, with this months drop we can see a steady, though gentle, decrease in median price over the last 6 months.
In contrast, however, the number of homes on the market is down at the same time that the number of homes entering contract has risen. Now, the law of supply vs demand would say that prices must be on the rise, but this is not the case.
Have you ever heard of Shadow Inventory? This refers to the large pool of homes that is in some form of financial distress- anything from late payments to actual foreclosure, but the homes are not yet ready to sell to a new buyer. You might think that this is not a factor in La Canada, but you would be dead wrong. Nearly three quarters of our current inventory looms out there, waiting to come onto the open market.
The buyers sense that it is out there. Nearly every buyer says they are looking for a foreclosure to buy- they want a deal with a capital D. Thus, even if they make an offer on a “regular” sale, they are not going go very high on the price. They are sure a better deal is just around the corner.
It is not all bad news! I think there is a real window of opportunity right now. With the right pricing strategy it is possible to sell a home for top dollar in today’s market. We don’t know what the future holds but today- well, today is the day!
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