Is now the time to buy?
It might seem implausible, but Los Angeles homes are actually selling more quickly, despite the pandemic.
According to an ABC7 analysis of Zillow’s data, homes in the L.A. area sold 8 days faster the last week of July this year than they sold in the same week last year.
According to the same analysis, while homes sat on the market longer than usual in April and May this year, the number of days a home lasted on the market began to drop in June and continued to drop through July. In June, homes sold on average 4 days faster than they sold in May.
Surprisingly, these quick sales are happening despite a pandemic, record highs in unemployment, and universal insecurity about the future. Also, the prices of homes themselves haven’t even decreased.
According to the Zillow Home Value Index, the average price of a single-family home rose from $697,000 to $728,000 since last June, showing a 4% increase.
The faster sale of homes in Los Angeles could be due to people’s changing needs during the pandemic. Some may want different amenities in their homes, like home offices or larger yards, to meet the needs of their family.
Another reason for faster home sales is likely the record-low interest rates. Currently, homebuyers can get rates lower than 3% for a 30-year loan.
Some experts believe that interest rates might drop even lower. So, buyers should consider whether it’s the right time to buy or it’s better to wait and see if they can get a lower interest rate.
The market across a majority of the price points is very competitive. For buyers who want to take advantage of the low-interest rate and environment, it is important to have an advisor on your side who can help you navigate through the process. When looking at properties with multiple offers buyers must know how to balance their offer price, contingency timelines, and other terms to move to the front of the line.