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The CA Association of Realtors has released the January 2024 Housing Market Statistics. Most of these sales went into contract in December with a 30 day escrow to result in a January closing.
In the Los Angeles County housing market statistics the median price fell in January, 2.4% in Los Angeles which is almost identical to January 2023, and 1.4% in Ventura County which is almost 1% higher than last year same time, Both counties remain up almost 7% from same time last year according to the California Association of Realtors. Since the changes are similar to January last year it supports that it is a seasonal trend.
The total sales volume month to month fell significantly 17% in Los Angeles County and not quite as much 10% in Ventura County. Both Buyers and Sellers stayed on the sidelines during the holidays.
For December contracts = January sales the 30 year fixed interest rates the rates started December at about 7% and dropped slightly to about 6.6%
The number of mortgage applications ticked up in January which makes sense as potential Buyers returned from the holidays. Unfortunately as rates increased in February from 6.62% to 6.9% both Buyers and Sellers went back to the sidelines and mortgage applications dropped again.
I attended a presentation by the CA Assoc of Realtors Economist Jordan Levine. I was pleased to hear that he is not overly concerned about the commercial market, specifically offices. It is my understanding that he expects prices to fall in some classifications, such as office buildings, but not enough to lead to failed banks. I was very relieved to hear that as I have had it on my radar as a concern.
Interestingly, there are occasional reports that commercial properties should be converted to residences but I have heard anecdotes about properties that tried that strategy but couldn’t secure Buyers after they investigated the high costs to convert the property. The buildings not only need additional plumbing, electricity and space reconfiguration but there can be other issues such as parking and insulation. Additionally Economist Jordan Levine pointed out that prices of commercial property are generally higher (because they include an income potential factor and more expensive building materials) so their Sellers don’t want to have to reduce their prices down to residential.
Mortgage analysts at Fannie Mae, National Association of Realtors and Bankrate still expect rates to fall to about 6% by late 2024. I think the market will respond well to rates that stay consistent at that level which is relatively low historically.
We still have an inventory shortage in Southern California. Seniors are staying healthy longer and they are happy to age in place rather than downsize. A survey of 2,000 Americans aged 65+ found that 49% believe that the idea that people need to move away when they retire is outdated and 41% aren’t planning on leaving their current home any time soon. An astounding 95% of respondents are either already retired or plan to do so, and, of those respondents, only 29% already have or will adjust their living arrangements.
If you are thinking of buying or selling real estate in the next 6 months it is important to do your homework on what mortgage programs are available and what is the best way to get your home show ready.
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
