After having a relatively slower month in February, the real estate market in the South Bay is picking up with 910 new listings and 490 sales in March compared to 1,011 new listings and 426 sales in March 2016. The average days on market dropped from a year-over- average of 38 days to an average of 20 days.
Average Sales Prices
The average sales price for single-family homes in the South Bay increased quarter over quarter from $892,000 in the first quarter of 2016 to $930,000 in 2017. Condos decreased from an average of $504,500 to $483,000. See the charts below for the average sales prices over the past year.
While interest rates are still at historic lows, they are expected to rise this year. For buyers, increased mortgage rates mean a higher monthly payment. For sellers, higher rates may mean reduced open house traffic and a potentially lower sale price.
Los Angeles County’s population grew by over 43,700 people from July 2015 to July 2016, the largest increase of any county in the state during that time, for a total population of over 10.229 million, according to the CA State Department of Finance. Since there are no signs of that trajectory changing any time soon, demand should continue to remain on the higher side in this area for the foreseeable future, although certain pockets may see a decrease in demand if interest rates and prices rise too aggressively.
If you are thinking about selling your home in 2017, the time to act is now. Find a proactive, knowledgeable, educated agent and start the preparation process to maximize your sale price. If you are considering buying a home, especially first time homebuyers, it is also very important that you find a good, educated agent who can help you navigate this competitive market and secure a loan now before rates rise.