After seeing the first quarter numbers for the Southern California real estate market, we continue to see a fast market with strong values and quick turnaround.
The first quarter in California has been heavy as a seller’s market. Just about every property we’ve been putting up for sale this year has been flying off the shelves. We’re seeing this for a couple reasons.
First, supply is low. There’s just not enough on the market to support the number of buyers on the market right now. And although we didn’t expect it, interest rates have gone down again, driving more buyers into the market, and it immediately erupted.
Home values are still strong. They’re not moving up very aggressively, but they are still on a rise. We’re not necessarily seeing that it’s a strong appreciation market, it’s more of a slow increase market with anything coming on getting sold very quickly.
As you can imagine, average days on market for the entire San Fernando Valley are in the low figures. Typically the average days on market is around 68 days, but so far this year, we haven’t had any properties that have stayed on market for more than 21 days.
"Home values are still strong. "
The San Fernando Valley as a whole is moving very aggressively, so there aren’t any specific neighborhoods moving faster than others. Talking to other agents in other areas nearby, we’re seeing that we’re not the only ones. Almost all of Southern California is a really hot market.
I predict the second quarter to be just as aggressive; going into summer time, we will see more properties coming on the market and more buyers coming into the market. Last year we didn’t see appreciation go up, but I think we’ll continue to see the market move at a very fast pace, and more options will come onto the market.
It’s exciting for everyone because properties aren’t depreciating and more properties should be coming onto the market soon. If you have any questions, please feel free to reach out as I’d be happy to help you with any real estate needs!