June Report for Burbank, North Hollywood, Studio City, and Woodland Hills

Infection rates going into July is on the rise and it appears California has gotten over the fear of the Covid 19, but this may not bode well for the future. Governor Newsome has rolled back some of the opening of businesses due to the infection spike, if the public responds accordingly it may be lifted before the end of July.

We have seen some decline in June Real Estate values in Los Angeles, but others have rebounded. The number of sales for all the markets represented are still down, but on the road to almost normal volumes in affluent markets. The Burbank market actually exceeded it sales volume from last year by 14%, maybe some pent up demand was alleviated, the key for real estate appreciation is if this continues and that other markets also rebound.  Overall volume though continues to be behind from 15% to  50%. The less affluent area sellers aren’t listing as much and the median price appears to be recovering, due to the lack of inventory or just better inventory. As we go through the Real Estate Sales season this summer it is anticipated the total volume continues to be muted.

Increasing Months of Supply is currently spiking ranging from only 2.2 months to 5 months. Houses that have sold though are not on the market long, 2-4 weeks, showing that quality sells and correct pricing is critical. If the increasing inventory does not sell soon, sellers will be more aggressive if motivated to sell their homes, thus increasing pressure for prices to soften. Interest rates continue to be low that is contributing in keeping the values from falling. Freddie Mac forecasts that interest rates for 2020 will average around 3.4% and decline in 2021 to 3.2%, I can’t believe interest rates can decline much more that will make a difference in a buyers decision to buy.

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