Introduction
In the ever-evolving landscape of the real estate market, staying ahead of the curve is crucial for both homebuyers and sellers. In this Spring Housing Market Update for West Hills, we’ll examine into the current conditions in West Hills, Los Angeles, focusing on housing supply and demand, home prices and appreciation rates, and the impact of mortgage rates.
1. Housing Supply and Demand
Understanding whether it’s a seller’s or buyer’s market is vital for making informed decisions. In West Hills, the current months of inventory stand at 1.4, favoring home sellers. While there has been a 16% increase in houses listed for sale, the overall supply is down almost 50% from what is considered normal. This scarcity in inventory has created competition among buyers, reflected in indicators such as median days on market and median percentage of original list price.
2. Home Prices and Appreciation Rates
Home prices and appreciation rates in West Hills have seen a significant uptick. The average home price appreciation rate for February reached 11.93%, marking the first double-digit increase since October. This surge compensates for a negative rate of -10.43% last year. The average sales price for single-family homes in West Hills exceeds $1 million, showcasing an 11% increase from the previous year. Examining a historical chart dating back to 2008 reveals a steady upward trajectory, highlighting real estate’s potential to build wealth over time.
3. Mortgage Rates
While there may be apprehension surrounding mortgage rates, it’s essential to gain perspective. As of February 29th, the Freddie Mac US Weekly average 30-year fixed mortgage rate is 6.94%, with the 15-year fixed at 6.26%. Although these rates are higher than the 10-year average, they remain lower than the long-term average rate of 7.74% since 1971. Projections indicate a potential decrease in rates mid-year as the Fed addresses inflation. It’s important to note that mortgage rates, while impactful, are not set in stone, and opportunities for refinancing may arise.
Adapting to the Market
For potential home sellers in the next three months, the key is to act swiftly, as waiting may lead to increased competition. Properly preparing your home, pricing it strategically, and utilizing modern marketing strategies are essential steps to stand out in a competitive market.
As for buyers, the prime buying time is now, and being financially prepared is crucial. Don’t wait until you find the perfect home to start the pre-approval process.
Conclusion
Whether you’re looking to buy or sell in West Hills or around the Los Angeles area, staying informed with current market data is the key to confident decision-making. For those outside of West Hills, stay tuned for the upcoming Spring Housing Market Update covering all of Los Angeles County.
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