by Jerri Hemsworth | January 20, 2018 2:42 pm
We’re probably around the peak, so say many in real estate. Low rates and low inventory have made for high prices, but with rates increasing, changes in tax laws, and questionable future scenarios, experts think we’re likely to see a pull back.
“Home sales will likely continue to struggle as we enter 2018, slowing the flow of agent fees,” told First Tuesday Journal, a top California real estate publication. “Historically low inventory for sale coupled with rapidly rising prices have discouraged potential home buyers.”
The publication also predicts the next rise in sales won’t likely be until 2019. That is, assuming residential construction can increase enough to boost turnover and inventory.
That being said, real estate agent Stephanie Vitacco of Keller Williams sees homes selling when priced at just the right spot. “The inventory in the San Fernando Valley is at one of the lowest levels I’ve seen in more than 30 years of selling. Houses are moving but the price point is tricky. Priced a tad too high and the house will sit. Priced correctly and there are multiple offers.”
Meanwhile, the California Association of Realtors reports that median prices in the state remain high. Median prices across the state averaged more than $540,000 (as of November 2017). Sales to list ratios, a measure of negotiation potential has been around 98.9%, meaning homes have been selling for just about listing price during the recent past.•
Source URL: http://www.socalprofessional.com/2018/01/california-real-estate-likely-to-slow/
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