Summer is here with temperatures and the real estate market both rising rapidly! In May, the sales volume of all residential real estate in the South Bay increased 37% on a month-over-month basis and increased 24% on a year-over-year basis. The inventory level stayed steady at 2 months, same as April, but decreased from 2.7 months in May of 2016.
The average sales price increased to $1,004,068 in May from $893,404 in April, and is up from $910,113 in May of 2016. See chart below.
Smart Home Technology
Whether you are thinking about selling or buying, one trend that is growing in the real estate market is smart home technology enhancements. According to a survey by ERA Real Estate and HGTV, 46% of consumers want to have smart home technology in their current or next home. They also believe it helps with the resale value with more than half of those surveyed saying they would be willing to install smart home technology in their home to appeal to buyers. Below are some smart home facts from the survey:
- Demand is high with the millennial generation, but older generations are adding some smart home technology faster than younger age groups. For example, 40% of Americans who are 65 or older who already own smart home products say they have smart temperature products, comparted to only 25% of millennials.
- Security and efficiency are the main drivers. Many homeowners state that the top reasons they added smart home technology was for the benefits of added security and energy efficiency.
- Systems are becoming easier to use. Companies are creating products that can integrate into a central hub of connected devices controlled from a single app or dashboard. There is also voice control that can be added where homeowners can speak a command instead of opening an app.
- When you sell a home that uses smart apps and devices, there are potential privacy concerns when transferring to the new owner.
Please call me at 310.947.2227 or email me at firstname.lastname@example.org if you have any real estate questions.