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The CA Association of Realtors has released the April 2024 Housing Market Statistics. Most of these sales went into contract in March with a 30 day escrow to result in an April closing.
In the Los Angeles County housing market statistics the median price rose 2.6% in April. This is very similar to what happened from March to April last year when prices increased 2.8%. Median price increased 2.4% in Ventura County which is not quite as high as the 4.3% increase last year same time. Median price is still up almost 12% in Los Angeles County from same time last year while Ventura County is up 6% according to the California Association of Realtors. Prices are holding steady in our area vs some other parts of the country so I recommend to follow local news in addition to national news.
The total sales volume month to month rose almost 12% in Los Angeles County and an amazing almost 30% in Ventura County over the previous month and increased from same time last year.
For March contracts = April closings the 30 year fixed interest rates started the month at 6.9% but ticked down a little during the month. Unfortunately there was a lot of optimism that the Fed would cut the rate but they did not which was disappointing. Also consider that April is the deadline for both income and Los Angeles property taxes.
More local to the real estate market in Los Angeles, in the San Fernando Valley in April the inventory inched up to 2.5 which was just about what we saw last April but lower than what we saw in the Fall of 2023 before the holidays. A balanced market Sellers/Buyers is considered 6 months so we are still in a Seller’s market. The change in mortgage rates is really fairly small when viewed from a historical basis but the fact that the Fed did not lower rates in March and the news headlines that regularly sensationalize the negative aspects of the state of the market is still impacting consumer’s decisions.
While the market is getting a slow start to spring it does anecdotally feel like activity is starting to come out of hibernation. Families are starting to realize the school year is coming to an end and we survived another tax season. Income and property tax in the same month was not well thought out in my opinion. Sort of like property tax right before Christmas and Hanukkah.
Supply and demand clearly impacts what is happening in the real estate market but I think it is just as important to pay attention to macroeconomic conditions. I continue to watch – the commercial real estate market, California’s economy (especially the unemployment figures), and China’s economy. I am not a trained Economist but it feels like the powers that be are using metrics that have not been updated to reflect societal changes post-Covid.
Los Angeles County seasonally adjusted unemployment dropped slightly to 5.3% but Ventura County’s unemployment dropped down to 4.2% in April. Another key item I continue to keep an eye on is credit card debt and delinquencies.
According to USA Today – The nation’s collective credit card balance stands at $1.12 trillion, near a record high, the Fed reports. The average card carries an interest rate of 21.6%, an all-time high. The average card balance was $6,360, another all-time high, at the end of 2023, according to TransUnion. Credit card delinquency is rising. In the first quarter of 2024, 6.9% of credit card balances fell into “serious delinquency,” 90 or more days late, according to Fed data, up from 4.6% in early 2023.
The report indicates younger borrowers have lower credit limits which makes it easier to max out but it is still an important factor to watch as consumer goods prices continue to rise. “There’s no question that people are leaning more on their cards to help them as prices continue to rise,” said Matt Schulz, chief credit analyst at LendingTree. “It also isn’t surprising that we’re seeing delinquencies increase.”
Who to Call
General real estate agents are great for working on every day transactions but if you are a Senior who is downsizing, a family settling an Estate in Probate or Trust administration or a family in a Divorce you need a real estate professional trained for these cases.
For a free consultation on your home’s value, how to prepare your home to sell or the real estate market in general call me at (818)570-1144 or email [email protected] or visit https://janeybishop.com
SRES, CPE, CPRES, RCSD, CDRE
Senior Real Estate Specialist
Certified Divorce Real Estate Expert
Certified Probate Expert
Certified Probate Real Estate Expert
Real Estate Collaborative Specialist – Divorce
