L.A. real estate news and insights.
In this episode of The #AskDanielLosAngeles Show, I talk about:
-How you can continue to live in your home after you sell it. This tip allows you to conveniently live in your home while you search for a new property to buy.
-The #1 reason why you should use a real estate agent.
-The top 3 real estate websites your home listing should be on.
-Why the holidays might be the best time to sell your home.
My wife, son, and I had the privilege of having our home remodel filmed for an episode of HGTV's House Hunters Renovation. It was a lot of work and stress... but all worth it in the end. Stay tuned because this episode has tons of remodeling tips and construction surprises! Feel free to ask any questions you may have about our remodel. I hope you enjoy watching the show as much as we had filming!
Shifting population demographics coupled with huge spending power have made baby boomers an increasingly attractive segment. A recent report on the US home improvement space is one example of how they are moving markets.
In the last post, we quoted Harvard's Joint Center for Housing Studies on their terrific analysis of the massive $340B home remodeling market in the US. There's another aspect of the report that is worth sharing--namely, boomers are the driving force.
Back in 2005, homeowners age 55 and over accounted for 31% (or $74B) of total home improvement spend in the US. in 2015, they accounted for 51.6% (or $114B) of total spend. Within the next decade, Harvard JCHS expects this number to increase by another 5%.
So what does this mean?
Baby boomers will drive housing markets for years to come and the sheer spend on home improvements is just one signal. Census data shows they are indeed the wealthiest generation to ever approach their retirement years (35% have incomes $95K or greater) so the spending power in unprecedented.
I'm very excited to see how real estate markets shape up in terms of buying and selling, and the terrific opportunities that present themselves. Interested in talking strategy? Feel free to reach out.
Amid all the news surrounding low inventory of homes and low building starts, another opportunity is getting less attention--the wave of remodeling. Here's what it means for folks looking to sell.
Harvard's Joint Center for Housing Studies recently published data showing a significant rise in the remodeling of homes in the US. In 2015, remodeling in the US totaled $340B a 57% increase since 2001.
Across the board, homeowners and renters alike are spending more money on their homes. And it's true among all demographic groups and cities throughout the US. This appetite for remodeling brings with it many opportunities.
For homeowners looking to sell, I see this as a growing appetite for fixer uppers. Yes, plain and simple. In a previous post regarding Arcadia, I mentioned homes listed below the median selling price have an advantage given the near-term equity potential. This is only strengthened by the increasing propensity of buyers looking to remodel.
From a marketing and positioning standpoint, I think there are many creative ways to target buyers who have a strong appetite and the cash for remodeling. In fact, my wife and I were those exact buyers a year ago. They're out there!
If you're looking to sell and want to talk strategy, reach out. I can tell you what Contempo Realtors can do for you in terms of positioning your home to the best buyers.
Over 100 residential properties have closed in Arcadia in 2017 and about 200 are currently active and listed for sale. Here's what the data tells us about this coveted LA community.
Key Takeaways:
So what does all this mean?
Well, first Arcadia is certainly one of the higher priced real estate markets in LA, with most homes going for over $1M. With higher price tags comes more days on market, so patience is key for locking in value for both buyers and sellers.
Well qualified buyers have opportunities to buy below $1M and gain plenty of equity in the near term. Homeowners looking to sell below $1M also have a unique positioning opportunity for home buyers looking to ramp up on equity.
Arcadia is definitely a challenging market given current price points and just stagnation in LA on the higher end of the market. However, there are opportunities in the low end price points that could be attractive for speculative buyers and homeowners who seek them.
We love talking strategy here at Contempo, especially when it comes to positioning difficult homes in what appears to be cold markets. Arcadia is just one example.
If you're looking to sell or looking to buy properties with the most upside, reach out and we can talk strategy.
Sellers can also try our free market analysis to get a view into who you're competing with for the best buyers.
We looked at over 230 properties in Northridge either currently active or sold in 2017. Here's what the data tells us about the market and what folks should know if they're looking to jump in or if they're already in the mix.
Here are the key takeaways:
Okay so what does all this mean?
First, in terms of active listings, Northridge is a very competitive market!
A big chunk of homes are around the same size, but have significant variance in price. This means plenty of room to negotiate for buyers, and pressure on sellers to defend value. I love this sort of competition. We're seeing this play out in the price action.
Second, we're seeing price action for almost 30% of active listings, with most lowering their price. Agents and their clients seem to be jumping in with high expectations and unfortunately weak marketing skills, because prices are dropping.
Finally, based on the data of closed deals in 2017, we're seeing houses at the lower price points close. This makes total sense right now. With a pretty normal distribution of size, buyers are grabbing deals at the lower end because these homes have the most upside.
This is the type of action I like to see and it's the type of competition I like to get into. If you're looking to jump in the market, or perhaps you're already there, reach out and we can talk strategy.
Having the right expectations can mean the difference between closing the best deal and settling for a lower price. This is especially true when it comes to optimal days on market for residential listings.
In this post, we analyzed about 2700 deals closed in the LA area for 2017 to give sellers a view into what they can expect when they enter the playing field.
Key takeaways:
**Areas we analyzed: Los Angeles, Burbank, Glendale, Pasadena, Sherman Oaks, Northridge, Tarzana, Beverly Hills, Granada Hills, Van Nuys.**
So what does this all mean? First, sellers are facing days on market upwards of a month on average for both detached single family homes and condos. This is mostly true for homes below 1800 square feet. So if you fall into this category, it is not unfair to expect this type of performance from your realtor.
Second, larger homes are sitting on the market much longer. Homes above 1800 square feet can expect upwards of 2 months sitting on the market. Thus, folks with larger homes and their realtors have more work to do in terms of finding and competing for the right buyers. Based on this early data, larger homes and the luxury market are facing the most headwinds.
All in all, 2017 is shaping up to be what I call a year for strategic patience. But if you can't afford to wait and don't want to put your future on hold (nor should you!), there are ways to beat these numbers and we have proven strategies to do so.
Interested in learning more? Feel free to reach out and get a better idea of what we can do for you. You can also try our free market analysis, and we'll provide something tailored just for you to get you started on your selling journey.
Low supply of rentals in LA are starting to pay dividends for homeowners who are leveraging Airbnb for extra cash. Hosts in LA made a combined $262M in 2016, making it the top Airbnb city in California.
As a prime destination for dreamers looking to open up shop and tourists looking to experience LA the way locals do, it makes perfect sense Angelinos are able to cash in on the Airbnb phenomena. In a previous post, we discussed a fundamental reality in the greater LA area for both rentals and residential listings -- low supply and high demand.
The economics can't be denied and we're seeing it play out in the the Airbnb circuit. In fact, the LA times reports that Californians sharing their homes through the Airbnb platform grew 51% in 2016 compared to 2015. That's over 76,000 hosts in CA in 2016 compared to about 50,000 in 2015.
With about 1M guests annually, LA is the top city in California, followed by San Francisco (444,000 guests) and San Diego (357,300 guests) rounding out the top 3.
What does this mean for homeowners? What are the implications for those looking to sell? Feel free to reach out and we can talk strategy. Otherwise, you can also try out our free market service to get a lay of the land in your neighborhood.
We analyzed 2000 residential properties sold in 2017 thus far. Here's what we learned about what's selling, at what prices and at what volume. This is especially useful for homeowners looking to sell and get into the market mix.
Key takeaways:
**Areas we analyzed: Los Angeles, Burbank, Glendale, Pasadena, Sherman Oaks, Northridge, Tarzana, Beverly Hills, Granada Hills, Van Nuys.**
So what does this all mean? First, closing prices are way below the prices of active listings, so as we've mentioned, there will be pressure to defend value. We do know that supply is low, so sellers can still have an advantage if they position their homes the right way.
Second, there are pricing anchors for areas where there's high competition in terms of square footage. Sellers should be aware of this and be sure to focus on key differentiators of their homes and neighborhoods that justify prices above median or average.
Interested in talking strategy? We can help. You can also try our free market analysis, and we'll provide something tailored just for you.
We took at look at over 2800 active residential property listings in LA to give you a sense of where there's action and what sellers can expect as the season heats up. Here's what we found.
Key takeaways:
So what does all of this mean? It's simple. The season is just getting started and competition is already ferocious.
What I'm most looking out for is price action. Right now 10% of listings are consistently lowering their price. With more listings entering the market, it will be interesting to see what happens to that number.
I still think it's a sellers market. I do think homes need to be positioned strongly to the right buyers so they can uphold their prices. Right now, at least 10% of homes are missing out on the low housing supply advantage.
Are you thinking of selling your home and want to talk strategy? Feel free to reach out. You can also try our free market analysis service to help you with your research.
There are over 2000 active listings in LA right now and the competition is about to intensify. What can buyers and sellers expect? Here's what the data tells us.
According to Realtor Magazine, spring is by far the hottest season for new homes to enter the market (see the chart below). We can expect active listings to skyrocket during this period well above 2000. And make no mistake there will be winners and losers.
For buyers, this means more choices. For sellers, it's all about increased competition. This is the season that rewards homeowners who know how to position their homes to ideal buyers. Buyers, on the other hand, will be rewarded for doing their homework early and understanding the the lay of the land when it comes to price and value.
In both cases, data is your best ammunition!
Stay tuned for the next post when we provide an overview of current listings throughout LA. We'll tell you what to look out for and what we can expect with the new wave of listings coming this spring.
Feel free to reach out any time if you would like a custom analysis of your market. You can try our free market analysis service.
Burbank is one of the most competitive markets in LA. Recent price action says a lot and buyers and sellers should take note. We analyzed price movements to show you where there's high competitive pressure.
Here are the key takeaways:
It will be interesting to see what kind of price action we'll see in the future, especially as more listings flood the market this spring. This is something buyers and sellers should pay attention to closely, especially if they wanna jump in the market.
It's only gonna get more competitive, so you need to be prepared. We can help. Try our free market analysis service. We'll get back to you with a tailored assessment of your market.
Torrance is the "hottest" market in LA right now. So what do potential sellers need to know about the competition? We analyzed current listings to show you the lay of land--what it will take to succeed and where we expect to see key challenges.
Here are the key takeaways:
**Please scroll through the charts below.
We love crunching numbers and empowering clients with the ammo they need to be competitive. If you're interested in selling your home, we can provide a similar analysis for you, free. Click here and try our service.
Higher prices and low inventory in LA tell a convincing story for why you should sell in 2017. Many agents are clearly pushing for this narrative. While I generally agree, I always tell folks it all depends on what your objectives are. So here's what you need to know.
1. Keep an eye out on mortgage rates (because your potential buyers are). The 30-year fixed rate in LA ticked down to 4.47%, but is still above the national average. Nevertheless opportunistic buyers (especially those with great credit) will be watching this closely looking to lock into a good rate early. If interest rate expectations hold, expect to see the bulk of loan applications crowd into Q1 and Q2 of this year because mortgage rates will likely go up by end of year.
What this means for you: Get to know the pool of buyers coming in now and what they're looking for in a home. This can give you the upper hand early in the game.
2. Know your competition (I can't stress this enough). A dose of reality early in the game is the best antidote for disappointment down the road. If you're looking to sell your home, you're essentially putting a product out in the market that is competing with others. Some will have different designs, some will have been recently renovated, the list goes on. Here's my point. Ideal buyers will value your home relative to what else is out there.
What this means for you: View the market from multiple angles beyond just price and CMAs. Know how many homes you'll be up against, how they break down by distinct features and designs and who the ideal buyers are in your area. Knowing the demographic shifts are also key in understanding who are the most likely buyers of your home--most CMAs miss this entirely.
3. Higher prices and low inventory can also work against you. Selling your home also means you'll be thrown into a market with higher prices and low inventory assuming you're looking to continue to own.
What this means for you: Narrow down your ideal neighborhoods and understand current playing field of available inventory. The more data and knowledge you have, the less susceptible you'll be to the price advantage of sellers.
I encourage home owners to take advantage of market opportunities when they present themselves. But I also encourage them to be armed with the right data and knowledge so they can maximize ROI.
Try our free market analysis service and see what we can do for you.
Check out the "hottest" real estate markets in LA and Long Beach by zip code. Torrance is holding it down pretty strong with three zips in the top 10, followed by Lakewood with 2. Where does your neighborhood rank?
Are you thinking of selling your home? Not quite sure how your zip stacks up? Reach out and I'd be happy to discuss potential opportunities.
