Builders call new-home market ‘unhealthy and unsustainable’

Forced to slow down construction as buyer demand plummets, builders predict lower home starts through 2023.

Single-family home starts dropped in September and were down 5.6% since the beginning of the year, the Commerce Department reported this week. Multifamily construction has dropped 13.2%.

Builders are blaming rapidly rising mortgage rates, ongoing supply chain disruptions, and affordability challenges for the rapid pullback in the new-home market. “High mortgage rates approaching 7% have significantly weakened demand, particularly for first-time and first-generation prospective home buyers,” says National Association of Home Builders chairman Jerry Konter. “This situation is unhealthy and unsustainable".

Come see my RECORD-BREAKING SALE in Encino!

I even sold all the furniture with this one! This is my 10th transaction in this building!

Record-Breaking Sale: This is the most expensive 2-bedroom unit to sell in this complex.

Represented sellers.

4610 Densmore Ave. #8

Encino, CA 91436

Selling price: $570,000

2 Bed | 2 Bath

Congratulations to my sellers and thank you for trusting me to get the job done!

I've got a new off-market property available in Sherman Oaks! LOOK!

For the general location, in Google maps, put in "Sepulveda Blvd. and Valley Vista Blvd."

This home has 6 bed/5 baths, over 3,900 sq. ft. of living space, and over 16,000 sq. ft. for the lot.

The multi-level home features views from every room and multiple balconies.

The terraced backyard has a lap pool and ample patio space, perfect for entertaining.

Text me for more info at 818-445-7953.

Open House this Sunday! Don't miss out on this great Encino condo!

Open House!

September 18th

1:00 PM - 4:00 PM

4610 Densmore Ave #8

Encino, CA 91436

$549,995

2 Bed | 2 Bath | 1,092 Sq. Ft.

For a private tour call/text the listing agent, Daniel Madariaga, at 818-445-7953. For more info visit DensmoreCondo.com.

LA home prices in July slipped 4.3% from June

Price corrections are coming to housing markets across the United States, Black Knight said following July’s home price decline from June.

San Jose, California saw the most significant pullback, with the average home price now down 10% in recent months, followed by:

Seattle, Washington (-7.7%)

San Francisco (-7.4%)

San Diego (-5.6%),

Los Angeles (-4.3%)

Denver, Colorado (-4.2%).

Source: Black Knight, a software, data and analytics company.

Just sold this Encino condo! This one went fast!

JUST SOLD! Received 7 offers!

Represented sellers.

4610 Densmore Ave. #3

Encino, CA 91436

Selling price: $667,000

3 Bed | 2 Bath

Congratulations to my sellers, and thank you for trusting me to get the job done!

Townhome style condo for sale in Encino!

For a private tour call/text the listing agent, Daniel Madariaga, at 818-445-7953. For more info visit DensmoreCondo.com.

Located South of Ventura Boulevard, within the Lanai Road Elementary school district, on the same street with multi-million-dollar homes, you will find this move-in-ready 2-bedroom 2-bathroom townhome style condo.

This open floor plan home has a huge living room and a large dining area. The spacious kitchen has custom cabinets and stainless-steel appliances. Other features include a primary bedroom with an ensuite bathroom, in-unit washer and dryer, central AC and Heat, copper plumbing, balcony access, recessed lighting throughout, and no one living above you. The Smart home devices include a Nest thermostat and smart light switches. There is also a private assigned parking spot equipped with an electric vehicle charger.

The complex has a big pool, clubroom, and BBQ area. Pets are welcome, Earthquake insurance is included, and the building is FHA approved. Purchase this unit with as little as a 3.5% down payment.

So, if you are looking for a 2-bedroom condo, that’s located South of Ventura Boulevard, at a great value, this just might be the home for you.

Mortgage rates drop below 5% for the first time in 4 months

How long will this last?!?

The 30-year fixed-rate mortgage dipped below 5% for the first time in nearly 4 months averaging 4.99% for the week ending August 4.

Supply constraints and a tight labor market will likely push rates back up, especially since the Fed is determined to bring inflation down even at a cost of a slight economic downturn.

Source: California Association of Realtors

LA County property value hits record $1.9T

The value of Los Angeles County properties has reached a record close to $1.9 trillion.

The county’s total assessed property value for 2022 grew by a record $122 billion to $1.89 trillion, the San Gabriel Valley Tribune reported. The increase doubled last year’s growth of $63 billion.

This is the 12th consecutive annual increase.

OPEN HOUSE this SATURDAY!

Open House!

Saturday, July 30th

1:00 PM - 4:00 PM

4610 Densmore Ave #3

Encino, CA 91436

$624,995

3 Bed | 2 Bath | 1,404 Sq. Ft.

2nd historic fed rate hike unlikely to ‘further damage’ mortgage borrowers

Here is a little good news on this bad economic day....

The Federal Reserve made another aggressive move Wednesday, raising its benchmark rate by three-quarters of a percentage point for the second time this year to try and tame the economy. However, higher mortgage rates may not necessarily be on the horizon as a result, says Lawrence Yun, chief economist for the National Association of REALTORS®.

“This is unlikely to do any further damage to mortgage rates,” Yun says.

“It is possible that the 30-year fixed-rate mortgage may settle down at 5.5% to 6% for the remainder of the year,” Yun says.

Encino Condo For Sale

To set up an appointment call/text the listing agent, Daniel Madariaga, at 818-445-7953.

Located South of Ventura Boulevard, within the Lanai Road Elementary school district, on the same street with multi-million dollar homes, you will find this 3 bedroom 2 bathroom condo!

This open floor plan home has a huge living room and large private patio, perfect for a BBQ. The spacious kitchen has a breakfast nook and a washer and dryer. The primary bedroom has an ensuite bathroom with a separate shower and jet tub. Other features include central AC and heat, recessed lighting throughout, and 2 side-by-side assigned parking spots.

The complex has a big pool, clubroom, and BBQ area. Pets are welcome, Earthquake insurance is included, and the building is FHA approved. Purchase this unit with as little as a 3.5% down payment.

If you are looking for a 3 bedroom condo, that’s located South of Ventura Boulevard, at a great value, this just might be the home for you.

For more info visit DensmoreCondo.com.

Check out this off-market condo in Encino before it hits the market! Don't wait!

Coming Soon!

4610 Densmore Ave #3.

Encino, CA 91436

Text me for more info at 818-445-7953.

This condo has 3 bed/2 bath and 1,404 sq. ft. of living space.

The first-floor unit has an open floor plan, in-unit laundry, and a private front patio.

The grounds have a community pool, an outdoor BBQ area, and 2 side-by-side parking spaces are included.

Fewer buyers searching for a home

In Los Angeles County, the median price increased last month to $781,050, up from $773,490 in February and $689,440 a year ago — a year-to- year increase of 13.3%.

While sales remained solid, there are signs that imply a market slowdown could be forth coming in the second half of 2022. A quarterly report released by National Association of Home Builders suggests that fewer buyers were trying to find a home to buy in the first quarter of this year. The share of prospective buyers who were actively searching declined to 46% in Q122, back to pre-pandemic levels after reaching a recent peak of 61% in Q221.

For those who had not been successful in finding a home, the share who plan to give up their home search until next year or later rose for the third straight quarter to 25% in Q122, after bottoming out at 20% in Q221.

Higher mortgage rates and double-digit growth in home prices are slowing down the housing demand momentum and the effect may become evident very soon.

Source: California Association of Realtors.

Saved by the Bell's Mark-Paul Gosselaar just sold his Sherman Oaks home! - Check it out!

Kelly Kapowski must be impressed!

Saved by the Bell's Mark-Paul Gosselaar just sold his Sherman Oaks home in an off-market deal for $5,300,000.

The home has 5 bed/5 bath, 5,791 sq. ft. of living space, and is on a 19,280 sq. ft. lot.

This private home is at the end of the cul-de-sac and is part of The Benedict Collection. It's considered an "upside-down" home. The living areas are upstairs, and the family /guest bedrooms are downstairs.

The backyard has a solar heated pool/ spa and a full outdoor kitchen.