In San Fernando Valley, the real estate scenario is such as that people are unwilling to put their houses on sale and a large percentage of people want to buy houses in the area. An advantage of owning a house in the Valley is that you get more land for your cash; however, you still have to shell out a lot of money.
Nestled in a region of Los Angeles County in the Southern part of California, the San Fernando Valley houses a total of 34 neighborhoods. The San Fernando Valley lies towards the northwest region of the Los Angeles Basin and encompasses the Northern half of Los Angeles city. The other cities that are found in the Valley are Hidden Hills, Burbank, Glendale, San Fernando, and Calabasas.
As per the Southland Regional Association of Realtors, the median home price in the region during June 2017 was pegged at $640,000. This figure was deemed to be quite high whilst keeping in mind that the median home prices in Los Angeles County were recorded to be $569,000.
In fact, during 2017, the real estate rates in San Fernando Valley were estimated to be an all-time high. The single-family residences were sold for $643,783, which was found to be 7.3 percent higher as compared to the previous year. Also, the given figure was known to be around, $30,000 higher than the 2007’s record of $611,931 – prior to the Great Recession.
In March 2017, the prices of houses in the valley skyrocketed to reach a new high of $671,500, which was way above the past record of $655,000 in June 2007. Before the Great Recession, the average median prices were in the Valley was set at $610,000, while last year they touched $599,733. Surprisingly, in 2017, the figure was recorded to be $630,400.
The reason for the houses in the Valley to reach new highs is owed to the low inventory, which has resulted in fierce competition.
People who have the money are going all out to woo the buyers. Also, the buyers are willing to pay for the repair works, if the seller refuses to do so.
As per the latest estimates, the average asking price on a countrywide scale is pegged to be $417 per square foot. In the Valley, the records are trending towards $384. In Los Angeles city, the average house rates are found to be $695 per square foot.
In the valley region, during December 2017, the total number of houses that were put for sale was only 819, which was below the 1,000 mark. As compared to July 1992, there were approximately 15,000 houses that were on the market, which was when the inventory was at an all-time high.
Nowadays, there is a shortage of houses in the valley due to which buyers are willing to pay a premium price for the available ones. Even though the prices have touched new highs, there are many buyers who are ready to shell out the money. Even then, there are not many houses that are listed for sale.
The sellers are hesitant to sell their houses because the homeowners are keen to learn the effect that the latest federal tax cuts will have on the market. Others are not sure that they will find another home in the region due to the shortage of homes in the Valley.
It has, also, been witnessed that the prices of Condos in San Fernando Valley are shattering records with the units being sold for $410,367, which is a 10% rise as compared to the previous year prices. Similar to other houses in the Valley, there is a deficit in condos that are up for sale as well. Last year, there were only 110 units that were listed for sale.