There are a lot of listings in Los Feliz right now, and more homes are hitting the market every day.
Honestly, I was a little discouraged to see the same overpriced listings hit the market after the New Year with ZERO change in strategy. A quick analysis tells a gloomy picture:
41 - Active Listings
13 - Listings Under Contract / In Escrow
73 - Homes Sold in Last 6 Months
Compare how many sold in the last six months, to the number in escrow right now, compared to the number of Active Listings. We have a "bottleneck" of listings.
Most sellers think the relationship between Buyers and Sellers is a puppy and his owner. The puppy being the Buyer. In certain markets like Northeast L.A., it's true. (Silver Lake, Highland Park, Eagle Rock, etc.) However, when you get into the luxury real estate market like Los Feliz, Hollywood Hills, Beverly Hills, it's more like a cat and his owner. Now the Owner has to pursue the cat.
For you "cat people" out there, you already know... the more you pursue the cat, the more he withdraws.
List Price / Sales Price Relationship:
If you look at the historic graphs of average List Prices & Sales Prices, you will notice a relationship. When list prices increases slowly, sales prices follow close behind. However, any time the list price jumps too fast, sales prices drop. The higher the spike in one, the deeper the dip in the other. When the list prices and sales prices get further apart, we see longer days on market, and more listings get stuck in the "bottleneck".
What this Means for Real Estate:
In Los Feliz, unrealistic list prices from Sellers and their Agents is EXACTLY why there are more than half the number of active listings as there are total sales in the last six months. This is a saturated market. However, nothing stays the same for very long.
In the next few months, Sellers will get frustrated and take their homes off the market. Inventory will drop, new listings will be more reasonable, and the market will take off again. However, nothing stays the same for very long :-) Keep in mind there are always the exceptions to the rule, but... right now the rule is:
If you're a buyer looking for homes in Los Feliz, these next few months are a great time to buy.