median home price dropped from a record high of $671,500 in March to $630,000 in April
Maybe in the San Fernando Valley at least (see Daily News article). According to the Southland Regional Association of Realtors, the median price of a single-family median home dropped from a record high of $671,500 in March to $630,000 in April, a 6.2 percent month-to-month drop.
Unfortunately for buyers in the market, they might not feel any relief. Home prices are still very high.
Prices have been on a steady upswing until April. In March, the median price for a home broke previous records in the San Fernando Valley. Buyers were facing low inventory and bidding wars which were driving prices even higher. Normal demand was still exceeding the amount of properties available. See this article on just what a home will cost you in the San Fernando Valley.
But in April, it seems buyers as a whole are nudging prices down by slowing things down and not jumping into bidding wars that have been the norm for the housing market. They are not so quick to jump in only to find themselves bidding over the asking price.
Sellers are also realizing that they don’t want to be on the hook for offers that are much higher than the actual appraised value of the property.
This slight reduction could mean that buyers that were previously staying out of the market because they felt they could not compete in the bidding may now re-enter the market. At least they now have a fighting chance at a home.
How severe is the housing inventory situation? In July 1992, there were 14,976 “active listings.” April 2017 ended with only 1,204 homes on the market in the Valley.
Even though prices have started to show some decline, it still doesn’t mean that it’s a buyer’s market. The April median home price is still at $630,000, up 3.3 percent from one year ago.
If the Los Angeles real estate prices just makes you want to rent instead, you’re not going to get much relief there either. Rents are surging in Los Angeles and the Valley. See this article on just what it will cost you to rent.