- Home sales prices in Silver Lake have hit new heights.
- A temporary slowdown is very probable due to an excess of listings.
- This will bring opportunities for both buyers and sellers in the coming months.
Silver Lake real estate is going to slow down for a quick coffee break... so get your ducks in a row everybody.
There is about to be an opportunity to pick up some great Silver Lake homes for sale without the usual competition.
For the first time in history, Silver Lake's median sales price was over $1 million for a three-month average, and this is going to shake things up.
(Three month average? Yes, I like looking at three month averages at the very least because it tells a more consistent story... in which case, real estate is booming in Silver Lake.)
Even in just the last six months, the neighborhood has gone through more changes quickly. Walk through the Sunset Triangle after 7 pm, and you'll notice that something is different.
The Celebration Dip
I've mentioned this phenomenon many times about many different neighborhoods (Los Feliz, Eagle Rock, Highland Park, El Sereno, etc.). It's cyclical, and relatively predictable.
Here's the concept:
When sales prices reach new highs, homeowners swarm to market in an attempt to cash in.
Unfortunately, they misjudge the market and end up "aspirationally pricing" the home where it languishes for several months, and they eventually give up or sell for much lower than expected.
(By "much lower than expected", listings that have expired before or have to reduce their price at least once sell for 2% lower on average than homes that don't...)
Over the last three months, Silver Lake homeowners have been thumbing through their Zillow and Redfin apps and seeing more closed sales throughout the neighborhood than usual, and many of those sales prices start with a 1 followed by a comma! (i.e. - $1,000,000)
Many of them will be gearing up to sell very soon which is great news for both Buyers AND Sellers...
Expecting this new saturated market, there will be an increased number of new listings competing for a fixed number of buyers.
But act fast, because these homes will not sit on the market forever.
Sellers trying a high price don't hang around long because of how stressful it is to sit on the market waiting for offers, while "walking on eggshells" and keeping the house in perfect showing condition for months at a time.
Research the market, find your house, and strike!
You are about to see a whole bunch of sloppy and overpriced listings hit the market. These homeowners will either call their cousin or friend who moonlights as an agent, or call a number off a 'for sale' sign that's been sitting across the street for the past six months because they don't know any better.
Not all listing agents are created equal.
And this is good news...
Almost in spite of the increased Seller competition, you will sell faster and for a higher price than them because you have done your research, and you will be thoughtful in your listing and pricing strategy.
You have to know your competition, understand why your house is better (or worse), be able to differentiate your home from the other with thoughtful marketing and a great pricing strategy, then hit the market at full speed, and take no prisoners.
Do you know how to do that? ... Maybe not entirely.
The Stresses of Selling Your Home
It's stressful to sell a house because there are so many moving pieces to consider. Most cut at least a few corners, and end up paying for it in one way or another.
But it doesn't HAVE to be a headache. You just need to find someone who can take care of the details, and make sure you're covered.