Over the last few months, you have received conflicting information from us. This is because we base our articles on information as it becomes available. Today’s article addresses the fact that home sales are down, but home prices are increasing; it is possible that home prices will take a dip in some locations, but Studio City, Sherman Oaks, Encino, and Tarzana are not suffering from these woes; sales are up, as are home prices.
In May 2020, home sales dropped significantly; there were 45% less sales in May 2020 than May 2019, though the median price of a home increased by 2.7%. Most experts believe that sagging home sales is the precursor to sagging home prices, because sellers won’t lower their asking price until they absolutely have to. It bears repeating that Studio City, Sherman Oaks, Encino, and Tarzana have seen an increase in sales over the last few months, and home prices have been increasing; an important caveat is that this is anecdotal evidence.
In general, the median home price is increasing everywhere but Ventura County. For Los Angeles County, home sales are down nearly 50% from last year, but the median home price is up by 1.6% to $620k. Similarly, Orange County’s home sales dropped by roughly 50%, while the median home price increased by 4.2% to $750k. This is in contrast to Ventura County, where home sales dropped by roughly 50% and the median home price dropped 1.7% to $580k The big winner appears to be San Bernardino County, where sales dropped 40%, and housing prices increased by 6.7% to $368k. Regardless, all indicators suggest that the market is recovering, and most analysts believe things will return to normal with the economy.
At the Chernov Team we understand that knowledge is power, and knowledge of market conditions is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.
