After two consecutive months of prices decreasing, we saw prices increase both MoM and YoY, with house prices up 4% YoY and condos flat. Unfortunately, we didn’t see the much-anticipated post-Labor Day inventory surge, with new listings up single digits MoM and only up 1% YoY.
|
Year-over-Year (YoY) |
Month-over-Month (MoM) |
|
|---|---|---|
|
Homes for Sale |
+14% |
-1% |
|
New Listings |
+1% |
+9% |
|
Homes in Escrow |
+3% |
-4% |
|
Closed Sales |
+11% |
+1% |
|
Median Sale Price |
+2% |
+2% |
With less than 2 months left before Thanksgiving, there doesn’t seem to be a rush of sellers wanting to put their homes on the market before most buyers start to check out. If this trend continues, 2025 will go down as one of the worst years for sales in 30 years. It might not be as bad as last year, which was the worst since the 90s, but it will be close.
Deals
I say this every year, buyers, now is the time to put homes on your radar that have been sitting. There will be sellers who want to sell before the year is over, and so this is your opportunity to get a deal. Keep in mind that sellers this year haven’t wanted to reduce prices out of fear that their home will continue to sit, and then buyers will offer lower than the reduced price. So don’t be afraid to submit those low offers, as there will be sellers who are waiting for them. Sellers, this might not sound like good news, but if you are a real seller and motivated to sell, you could still get a price you’re happy with. Or at least happy enough with it so you can put it all behind you and start the new year fresh. Buyers, if the monthly payments are still too high for you, reach out, and I will explain how to get an interest rate in the 3%’s or 4%’s for the first 12 months.
Mortgage Rates
With the government shutdown, this will be even harder to predict. Due to the shutdown, there will be no economic reports released by the government. These reports are crucial because they provide investors and, more importantly, the Fed with the data they need to plan for the future. Without the reports, they will need to rely on whatever data they can get their hands on. Be prepared for some rocky times ahead, the longer the shutdown persists.
Record Price Cuts
According to a recent report from Redfin, this August saw the most price reductions for that month since 2012. It’s important to note that a lot of these price reductions are caused by sellers no longer trying to chase pandemic prices. However, clickbait headlines tend to influence the market the most, so this could further make it harder for sellers if buyers continue to sit on the sidelines waiting for prices to drop. On the flipside, it can also be a moment of opportunity for buyers to place offers with less competition. Even though we are seeing softness in the market, this is a national report. Real estate is now more hyperlocal than ever, so remember this when reading national headlines.
Palisades
The big news yesterday was that the suspect responsible for starting the fires has been arrested. There will likely be many questions surrounding how this could have happened given the circumstances, so expect this story to continue for many months.
Inventory continues its slow downward trend as fewer lots are hitting the market, and the good ones are getting snapped up. Prices were stabilizing, and for the most part, they have, with the median price still declining slightly. Building has been increasing, with about 37 homes already framed. Thomas James is expecting their model home to be ready mid-November, marking the first completed development project since the fires. It is located at 915 Kagawa St on the Alphabet streets.
Click below to follow the land market in real-time. It’s an active link that will update with the current day's data.
https://www.themls.com/MarketSnapshot/T/YWFhYWJmamRi
