single family residence

Prices down 12% — But Inventory Plunges 75% in the Northwest San Fernando Valley!

Compared to a year ago, the median sold price for a single family residence located in the northwest San Fernando Valley has dropped 12% to $425,500. However, a few months ago the numbers were even uglier. Since April 2009, the price trend has started back up, possibly in part due to the influence of the first-time buyer $8,000.00 tax credit — which is set to expire in December, and investors snapping up distressed properties.

But, even more interestingly, we are now looking at only two months of inventory for single family houses! This figure shows that how little inventory there is to meet demand, potentially contributing to a surge in prices. Much of the current inventory is REO or short sales. However, the real inventory may be even higher: the published figures don’t take into consideration what is referred as “shadow inventory,” where banks are either delaying putting their inventory on the market, or are delaying foreclosure, meaning that some “zombie” properties are not being taken back . . . yet.

If you are interested in finding out how your particular area is doing, please email me and I will be happy to forward it to you.