By Redfin agent Josh Ritnimit
Thanks in large part to an increase in the number of homes for sale in the San Gabriel Valley, balance appears to be returning to our local real estate market. There’s no question that the entire Southland has been an unequivocal seller’s market for at least the last year, mostly due to a profound lack of homes for sale. That trend, however, is just starting to turn in the second half of 2014.
Lots of properties were snatched up by investors in 2013 and rehabbed over the past year. Given the healthy price gains experienced in 2013, many sellers are finally deciding to list since they have some long-awaited equity. As a result, there are many more homes making their debut on the market this year, especially in Arcadia and Temple City, as you can see below. If market fundamentals hold true, this increase in the number of homes for sale will create conditions more favorable to buyers, such as softer prices and less competition.
June 2014 Vs. June 2013 Arcadia Monrovia Pasadena Sierra Madre Temple City
Change in amount of homes for sale 45.2% 4.0% -1.4% 0.0% 40.0%
As Redfin recently reported, buyers and sellers are not on the same page. Due to the low inventory and high demand of last year, many sellers are still inclined to overprice their homes and investors are looking to capture healthy profits from their investments. Buyers, on the other hand, have a much more acute sense of value and they have begun to demand turnkey homes at a fair price.
This means that at mid-year SGV prices are still higher than in 2013, but the rate of price appreciation isn’t as dramatic as it was and homes are spending more days on the market.
Arcadia Monrovia Pasadena Sierra Madre Temple City
June 2014 Median sale price $1,080,000 $618,000 $666,500 $788,000 $652,500
June 2013 Median sale price $1,150,000 $506,150 $581,000 $708,500 $600,000
Year-over-Year price change -6.1% 22.1% 14.7% 11.2% 8.7%
June 2014 Median days on market 16 13 15 45 13.5
June 2013 Median days on market 11 12.5 12 18.5 13
Homes that are priced right still sell quickly in our highly desirable communities. And multiple offers remain the norm considering the robust competition coming from buyers overseas. But the increase in homes for sale and an increase in the median days on market are both encouraging signs for buyers. As the remainder of the 2014 home-buying season winds down buyers should experience increased negotiating power and get just a little more house for their money.