Is a Market Shift on the Horizon in South Bay?

According to the latest statistics, we may be on the verge of
a market shift. However, it’s still a great time to both buy and
sell in the South Bay marketplace.





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My team and I believe we’re seeing the signs of an early market
shift, and I have the numbers to prove it. If you follow along in
the video above, you’ll see several graphics with statistics that
reflect the year-to-date results of our market through September
2017. Let’s start with home sales. There were 1,360 homes for
sale in September 2017, which was a decrease of 1% compared to
August 2017 and an 11% decrease compared to September 2016. The
number of homes closed in September 2017 totaled 861 units, which
was an 11.2% decrease compared to August 2017 but a 3.6% increase
compared to September 2016. There were 883 homes placed under
contract in September 2017, which was a 3.6% decrease compared
August 2017 but an 11% increase compared to September 2016. The
average price per square foot in September 2017 was $525, which
was a 1.1% drop from August 2017 but an 11% rise compared to
September 2016. We’ve had a shortage of inventory throughout most
of 2017, so that 11% year over year increase shows that buyers
are more active and paying a premium for available homes. The
average days on market for September 2017 was 33 days, which was
a 6.5% rise compared to August 2017 but a 29.8% drop compared to
September 2016. Buyers are more active than they were a year ago,
but because we’re seeing a month-to-month slowdown, I believe
that slowdown will continue. Properties in September 2017
sold at about 97% of their list price, but that number had been
dropping over the last month or two, which is another indicator
of a market slowdown.


We’re still in a seller’s market, but now is a great time to
buy or sell.

The average active sales price per square foot for
September 2017 was $1,654, which represents a 1% drop compared to
August 2017 but a 10.6% spike compared to September 2016. The
average sold price per square foot for September 2017 was $922,
which was a decrease of 3.5% compared to August 2017 and 14.5%
increase compared to September 2016. These statistics explain why
whenever my clients ask me how much our market has appreciated
from 2016 to 2017, I say a fair answer is about 10% to 11%.
Lastly, we’re averaging about 1.6 months’ worth of inventory for
September 2017, which is up 14.4% compared to August 2017 but
down 11% compared to September 2016. As these numbers show,
we’re still in a seller’s market, but now is a great time to
buy or sell. Mortgage rates are still hovering around 4%, and
our economy is still robust. If you’re a seller or an investor
who wants to lock down your gain from the past three, five, or
seven years of appreciation, this is without a doubt the market
to do that. If you have any other questions about our market or
you’re thinking of buying or selling in the Los Angeles
County/South Bay marketplace, don’t hesitate to reach out to me.
I’d love to help you.