Where Is Our 2017 Market Headed?

Los Angeles and South Bay Real Estate Video Blog with Lenny LaRocca

Major shifts are predicted take place in our market in 2017, so today I want to relay those shifts and give you an idea of where our market currently stands.

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What’s been happening in our real estate market lately? Here are four major impending shifts as predicted by the NAR you need to know about:

1. First-time buyers will play a big part in home sales in 2017. In fact, one-half of those buyers will be millennials. Today, about 33% of younger first-time buyers comprise the whole buying public. In 2017, it’s projected that 55% of the buying public will be first-time buyers. Of that 55%, about 61% of those first-time buyers will be millennials.

2. Affordability will become a big factor with the onslaught of first-time buyers. In 2016, the big issue for buyers was a lack of inventory. In 2017, the issue will be qualifying for a loan.

3. There are three primary attributes buyers will look for in 2017: safe neighborhoods, a larger living space, and a larger yard space.

4. Competition for properties in the suburbs will heat up. This means if you’re looking to buy or sell in 2017, it’s important that you get a jump on that action as soon as possible.
In light of these impending shifts, I want to provide you with a statistical comparison of the current markets in LA County and Orange County.

Competition is heating up for buyers and sellers.

In LA County, the median home price is $484,630, which is over a 9% drop between October and December of last year. Year over year, between November 2015 and November 2016, we had a 5.8% increase in median home prices across the board. When you compare the last two years, from November 2014 to November 2016, we had a 25.3% increase in home values. As a whole, LA County has an unsold inventory of 3.3 months. The average days on market for homes sold is at 36 days.

In Orange County, the median home price is $734,500, which is actually a 2% drop from October 2016 to November 2016. Year over year, between November 2015 and November 2016, the median home price rose 4.2%. Between November 2014 and November 2016, property values increased by 26%. Coincidentally, Orange County also has an unsold inventory of 3.3 months. The average days on market for homes sold, however, is at 49 days.

Obviously, any of these stats would be specific for any micro-markets within either county, but this gives us an idea of where the market in our region stands as these NAR predictions begin to unfold. If you have questions about this topic or any other real estate needs, please feel free to give me a call. I look forward to speaking with you!