A recent Los Angeles Times article covered the subject of sales of existing homes dipping 1.5% since last month while prices have steadily increased.
The article discusses issues that we are experiencing in the current real estate marketplace, which especially hold true in Greater Los Angeles and in the San Fernando Valley.
The inventory of available homes is at an all-time low and this has contributed to the increase in prices.
As selections are slim, current homes for sale are fetching high prices. Last month national resales slipped to a seasonally adjusted annual rate of 4.55 million, from 4.62 million in April, but were up 9.6% from May of 2011, according to the National Association of Realtors.
The N.A.R. report, which also factors in townhomes, condominiums and co-ops, blamed the slight drop in sales from April on tight supply of properties instead of on softening demand. The inventory of listed homes for sale is 20.4% less than a year ago, according to the Realtors association. Mortgage rates are at an all-time low, which makes it a great time to purchase a home.
And now is better than later as the price of single-family homes are steadily increasing with the strengthening of the housing market and amidst the housing recovery.
According to the Los Angeles Times article, heavily discounted foreclosures and short sales make up a considerable but decreasing portion of home purchases – 25% in May from 31% a year earlier. First-time home buyers, however, make up a third of the pool – a smaller portion than before. Based on the current marketplace and conditions, many Realtors are having a difficult time finding properties to show to the many buyers who want to purchase.
This is very challenging when there are more buyers than homes available. As you can see below, there are currently less than 100 houses listed for sale in all of Encino and less than 80 in all of Tarzana. There are less than 90 condos/townhouses for sale in Encino and Tarzana combined.
Active inventory shown in the MLS real estate website 6-28-12: 91436 (Encino) has 51 single family listings; 91316 (Encino) has 43 single family listings; 91356 (Tarzana) has 77 single family listings; 91436 and 91316 (Encino) have 72 condos/townhouses; and 91356 (Tarzana) has 14 condos.