Thanks to exponential growth, Los Angeles homeowners have accrued a fortune, but many find themselves faced with a dilema:
1. Can you afford where you want to live?
Since you bought your home, real estate prices have skyrocketed around you.
- Is the equity in your home enough to cover it?
- Will you have to get a small mortgage?
- Have interest rates gone up yet?
2. Will you have to pay Capital Gains taxes?
To many, this can be a paralyzing decision to make:
Who wants to purposefully make a decision that could rack up a $100,000+ tax bill?
- Should you just "stay put" and live out the rest of your days?
- Or realize your lifelong dreams and enjoy your life?
Market Watch: January through June ( go here 2016 vs. 2017)
Los Angeles County
- go site # of New Listings: 37,281 to 36,245. Down 2.8%.
- follow # of Solds: 23,732 to 21,225. Down 10.5%.
- http://buy-generic-clomid.com Days on Market: 60 days to 51 days. 16% faster.
- Sales Price Ratio: 96.8% to 97%. Increasing.
- Median Sales Price: $565,000 to $603,000. Up 6.7% ($38,000).
The number of new listings is down, but the number of sales is down even more. This could be because of "aspirational prices" from some sellers that actually discourage buyers from writing offers on some, and competing even more over others that priced appropriately. If this was the case, it makes sense that days on market is faster and sales prices increasing a very nice amount.
City of Los Angeles
- # of New Listings: 5,764 to 5,797. No change.
- # of Solds: 3,558 to 3,574. No change.
- Days on Market: 57 days to 52 days. 6% faster.
- Sales Price Ratio: 96.5% to 96.7%. Increasing.
- Median Sales Price: $744,000 to $819,000. Up 10.1% ($75,000).
No change to new listings or closed sales, but homes are selling faster and prices are up a whopping 10% over last year. This could indicate that the number of buyers jumping into the market is growing due to fears of affordability in the future or rising interest rates.
Most likely, this is due to a larger number of more expensive homes in different markets and smaller number of cheaper homes in less-affluent areas where turnover is less than in more-affluent neighborhoods. For instance, we are more likely to see higher turnover in the $2 million and above price range compared to under $1 million.
Los Feliz Neighborhood
- # of New Listings: 168 to 180. Up 7.1%.
- # of Solds: 116 to 108. Down 6.9%
- Days on Market: 65 days to 71 days. 9.2% slower.
- Sales Price Ratio: 96% to 95.8%. Decreasing.
- Median Sales Price: $1,454,000 to $1,557,000. Up 7.1% ($103,000).
This is classic Los Feliz behavior. Right before a hot market, the neighborhood is flooded with inventory, and less homes going into escrow. Again, due to "aspirational pricing" by eager sellers, this drags out days on market and lower sales price ratios.
Even still, these homeowners are patient and waiting to get their numbers. From 2016 to 2017, homeowners in Los Feliz earned themselves another $100,000 in equity thanks to their patience in the real estate market.