Why Real Estate Feels Wonky Right Now
From national news headlines to your favorite social feed, we’re hearing homes are sitting on the market longer. But NOT all homes. Why? There are a couple of reasons.
No one wants to buy a problem
Thanks to the internet and YouTube, home buyers are educated and know exactly what they want. Yet most don’t have enough extra cash to do significant renovations (just floors, paint, and new appliances). Trust sales are the few homes hitting the market, especially in Montrose, La Crescenta, and Glendale areas. Someone has passed away, and most homes have extensive deferred maintenance, enough to make investors and developers pass. The only exception is when the house is in a sought-after neighborhood or location. Then you’ll see major activity and multiple offers. To appeal to more homebuyers, cleaning up the home, staging, and a fresh coat of paint do wonders – plus, grab a higher price.
Sellers don’t have to move
Another reason homes are sitting is that many homeowners who have put their homes on the market don’t have to move. They want their price. They’ve owned the home for decades, have a low-interest rate, and are hoping they can get that 2021 price. If they don’t, they’re renting the home out instead and getting the price they want in the rental market. This adds to the perpetual problem within Los Angeles proper – just not enough homes for sale.
Perception vs. Reality
A home is worth what someone is willing to pay for it. That was apparent from 2020 to the Summer of 2022, when emotional homebuying was at its peak, and incredibly low-interest rates allowed people to make that move. The challenge we’re facing now is that home prices have not decreased in sought-after neighborhoods. Glendale, Montrose, and La Crescenta are included on that list. When homes come on the market in those prime spots and check everyone’s boxes (3 bedrooms, two baths, quiet streets, large lot), these homes create a feeding frenzy with multiple offers and all contingencies removed. This is still happening and will continue to happen as long as the home shortage continues.
Homeowners, please know there are plenty of Buyers out there who want your home. You need to ask yourself the hard question if you’re willing to spend the time and money to get the best return on your most significant investment? Whether you plan to move in 2 years, 10, or never, you should always take care of your home, and that starts by knowing what it’s worth and how to keep its optimal value.
If you’d like to know more about how to do that, I’m happy to help!