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Woodland Hills: Expectations Out of Balance

Last time I analyzed the MLS data for the North West San Fernando Valley, I noted some encouraging trends: a 1% year-over-year increase in the median sold price, and the fact that the “for sale” prices were within approximately 10% of the “sold prices,” which is considered a healthy equilibrium between buyers and sellers. This basically means that sellers are being realistic, which permits transactions to take place. But, turning to the micro-climate of Woodland Hills, we can see a very different picture. On the chart below, it is apparent that while the “for sale” price hasn’t budged since last year, the median sold price has plunged 11%. In other words, buyers and sellers are getting increasingly out of sync. But, at the same time, inventory has plummeted from earlier this year. It will be interesting to see in the coming months whether the expectation gap causes inventory to increase. Stay tuned.

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Signs of Bottoming In The San Fernando Valley?

DataQuick has reported that Southland home sales are up overall, and the same trend can be seen in the MLS data from the Northwest San Fernando Valley. Indeed sold prices have actually increased by 1% from a year ago. Also, since the gap between the “for sale” price and the “sold” price is now within 10%, which is considered to be a good sign for increasing sales, as the sellers’ expectations have gotten within striking distance of the buyer’s. This chart also appears to reflect some influence from the federal first time homebuyer tax credit and the pressure to close before it expired (although it has now been extended in a slightly different form).

Also check out the lower chart for a dramatic view of the shrinking inventory. This reflects the buyers’ frenzy that snapped up many of the better priced properties during the middle of the year (most of which were distressed.), For whatever reason, much of this inventory has not been replaced with new inventory. The moratorium on foreclosures may have had some impact on this number, as had the “shadow inventory” — properties that the banks have not foreclosed upon, for reasons of their own. Many are expecting more of these properties to be put on the market over the coming year.

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Woodland Hills Condos are Few and Far Between

I recently have been looking for a condominium in Woodland Hills for one of my buyers. Woodland Hills would be a perfect choice for my buyer, in view of her criteria: amenities, easy freeway access, close to the beach. Calabasas would be great, but the prices are a bit out of her price of her range. So we looked (and are still looking) and I have been amazed at how few suitable condos are on the market. A lot of condos that were built during the boom year have been converted to luxury apartments, greatly reducing the pool of available properties for someone looking for a condominium. (One Warner Center condo building — the Ascent — still stands uncompleted, a victim of a double whammy: fire + financial crisis).

The MLS data proves that the number of condos on the market has, in fact, been greatly reduced over the last two years — and of course, even fewer have been sold. Let’s hope that more condos are listed so prospective buyers will have some better choices. Maybe they will even finish the Ascent someday! In the meantime, if you have a well-kept 1400 sq. ft. 3 bedroom condo in Woodland Hills that you’d like to sell, I may have a buyer for you . . ..

If you would like to have updates of Woodland Hills real estate data like this emailed to you, you can contact me at (310) 866-9619 or send an inquiry from our contact page.

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Number of Woodland Hills Homes In Escrow up 55% over last year

It appears that home buyers have finally been coming out of the woodwork lately. Looking only at single family detached homes in Woodland Hills, the number of properties going into escrow has been leaping recently. The latest figures from SROAR comparing May 08 to May 09, show an increase of 55% of such homes going into escrow. I would not be surprised to see this trend continue, at least if the interest rates stay relatively low (and they still are, even after the latest uptick).

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