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.
In general the news is the same as last month. Inventory is down and sales are up. Actually, sales are waaaaaay up- 81% more homes are in escrow this month versus last year in March, and nearly double the number of homes that sold last month. That is amazing.
This begs a question. Why aren’t home prices rising? And, if they haven’t started to rise, aren’t these numbers a hopeful sign that prices are going to turn around soon?
Ah, Chilluns- you’ve heard me before… it is the Shadow inventory. Shadow inventory are homes that are somewhere in the process of foreclosure but are not available to be sold to a new buyer. Glendale’s shadow inventory is much larger than our actual inventory- 164%, in fact. More daunting is the fact that our ratio of shadow inventory is growing. While the average buyer is unlikely to know these facts (except for the savvy buyers reading this blog) they know there are many foreclosed homes to be “had”. As a result they are very price sensitive.
So- what is my advice? Sellers- this is a great opportunity to sell if you are committed to selling in the next year or two. A lot of buyers want to buy and low interest rates means they CAN buy. Buyers- your path is less clear. Prices could go down, there is no way to know for sure. However, it is a fair bet that interest rates will rise. This could mean that even if prices do go down, homes will be more expensive due to the loan costs. If you see a home that you like and fits your budget I would buy it today.