On the other hand, we have a concurrent “cooling” market - price reductions, cancelled escrows, longer days on markets. In Silver Lake and Los Feliz, out of 107 homes for sale…
- 13 are "Back on Market," meaning a buyer canceled
- 14 have had their price reduced
- 23 have been on the market longer than 90 days
In Hot vs. Cool, price points matter:
- Homes priced under $1.5mil in LA County are selling faster than they were last year
- From $1.5mil to $4mil, selling time is roughly the same
- From $4mil to $8mil, average days on market has grown 50-100%
In the real estate agent-sphere, it's all anyone is talking about. For some houses, it's 2021, for others, sellers are scratching their heads.
A couple of thoughts. Now, more than ever, pre-market preparation and marketing is instrumental. Buyers are confronted with huge housing costs, so they don't want to take on the problem of fixing the garage doors or repainting the interiors (they have enough problems with their 7% looming rate).
Second, if you have the luxury of a multiple-offer situation, make sure your agent is screening who is most likely to STAY in escrow - how strong are the buyers financially? Have all decision makers seen the house in person? We have a list of buyer screening questions.
The market changes every six to twelve months. Prepping homes for sale and keeping deals together is the work of realtors in this market, so make sure you get a good one.
Stay cool out there people…
