What You Need to Know About the Porter Ranch Market

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Today, I’d like to give you a quick July real estate market update for Porter Ranch and the San Fernando Valley.

Earlier this month, we talked with Brandon Moss of Prime Lending about how Brexit would affect the interest rates here back at home, and we’ve already seen some of the effects of that:

Interest rates are now hovering around 3.5% for most home buyers and many are using the low rates to their advantage by taking the opportunity to refinance. This has put a huge strain on the system because there is such huge demand right now for people looking to buy as well as refinance.

On the home purchase side, this high demand is driving inventory down. If you go back to July of 2015, approximately 3,200 homes were up for sale in the entire San Fernando Valley, but right now there are fewer than 2,800 properties for sale. Why is this significant? July is one of the busiest months as far as inventory is concerned, so if something comes on the market right now that is priced accordingly, it will not stay on the market for very long and will quite often have multiple offers.

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You’re seeing a very strong and healthy real estate market right now.

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Since interest rates have dropped, we’re beginning to see more and more multiple offer situations than we did even earlier in the year. The bottom line is that we’re seeing a lot of demand from buyers, and there is simply not enough supply to go around.

This is also affecting what is taking place during escrow. Because so many lenders are backed up, a few different scenarios are taking place. First, there is a high demand for appraisals due to the large numbers of refinances and home purchases. The second scenario is that many lenders are experiencing delays when closing escrow. We’re starting to see a lot of lenders, especially the big banks, unable to perform on schedule due to high-volume backups. As a result, you should be sure to select a lender that is able to perform per your contract, since many appraisers have been unable to keep up with demand on time.

At the end of the day, you’re seeing a very healthy and strong real estate market right now in Porter Ranch. Again, there is a lot more demand than there is supply, which makes for quite the seller’s market.

If you’ve got any follow-up questions about the real estate market, you can always give us a call or send us an email and we’ll be happy to answer them!