Lower Transactions has Wild Affect on Values.

The outlook for the Los Angeles Real Estate Market is still up in the air, but ongoing research on therapeutics for infection is actually achieving some positive results. If this trend continues there is hope for optimism that in a few more months other treatments may be found to stem the wave of infection or at least the severity of infection. That being said, we have seen some decline in Real Estate values in some of the markets in Los Angeles. Many of this can be explained due to the limited amount of transactions that are ongoing during the Shut Down order. For the most part throughout the area there has been a significant decline in listings hitting the market and the number of closings that are skewing the median price. Lower amount of data points may have this affect on the resulting numbers and it should not be a considered a moment of panic for Sellers. We are not in a normal market situation and Sellers and Buyers are still holding and waiting. According to the sub-market on the graph the biggest hit was Studio City dropping close to 25% in the median price, this was due to what I explained about lower data points. There is a wide gap in this market between product type and  it just so happened that if there was just one more transaction in the $1.2-$1.35 price range, the median price would not have been affected. All the other markets are showing very mild drops, which I believe paints a truer picture to what is happening in values.

Mortgage Rates lowered in April to 3.23% for a 30 year fixed rate month over month from 3.46%, and year over year lowered by 28% from 4.14%.  We haven't seen interest rates this low since December of 2012 which were the lowest in 40 years at the time. Low interest rates support values for real estate.