Southern California Real Estate Market Update

How is the market doing in the San Fernando Valley area? I’ve got the recent numbers in my latest video.

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How does the summer market look in our area? Before we launch into the update, I wanted to let you know that we have a couple of links for a list of all the local fireworks shows happening on July 4th. 

Inventory has increased since April. That’s fairly typical of this time of year, where we see an uptick in inventory as the spring season moves into summer. The properties are still selling, but the inventory numbers have definitely increased. 

In the end of April, we had about 2,200 homes for sale in the entire San Fernando Valley, and now we’re looking at almost 2,700 properties that have been listed. In Porter Ranch, there were 65 properties for sale in April, and now you’re looking at closer to 90 properties.

With these numbers, the inventory is still quite low.

With these numbers, the inventory is still quite low. Obviously there is more to choose from for buyers than there was a few months ago, but that inventory is still quite tight. Furthermore, even though we’re seeing more properties come onto the market, it doesn’t make much of a difference in inventory because demand is so high. 

You can really see that reflected in the amount of closed escrows, which is up 30% from this time last year. In May of this year, we saw over 1,700 closed escrows in the San Fernando Valley, which is up from 1,300 in May 2016. 

The other big news is that the Fed raised the interest rate again, but the rates really haven’t been that affected. We’re actually hovering around 4.5%, and buyers are currently qualifying with rates between 3.75% and 4% interest. 

Right now the market is still very strong and properties are selling if they’re priced correctly. If you have any questions or you’re looking to buy or sell a home, please give me a call. I’d be happy to help you!

3 Questions You Should Ask Yourself Before Listing on Airbnb

Are you thinking about buying or listing an Airbnb property? There are a few questions you should ask yourself first.

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You’ve probably heard of the property website Airbnb before. You may have even stayed in an Airbnb property before. My own family has stayed in Airbnb properties all over the world. It’s a great way for homeowners and investors to make a little bit of extra money, and more buyers are purchasing properties lately to use for this sole purpose.

If you’re thinking of listing your current home on Airbnb or buying a rental property to use as a rental property for Airbnb, there are a few questions you should ask yourself to know if you’re making the right choice.

First, have you picked a good location? As the first rule of real estate goes: location, location, location. In order to be a successful investment, demand for lodging has to exist in your specified area. It wouldn’t make sense to have an Airbnb property in a place that has very little tourism. Your property should be close to attractions and transportation. A good view helps, as well. 

For your Airbnb to be a successful investment, it has to be in the right area.

Second, how much time and energy are you willing to invest? Airbnb properties don’t rent themselves. You’re expected to provide a clean space, and guests will expect certain things like clean towels, tourist information, and a way to reach you in case they have any problems. Hosting can be difficult and time consuming. You can hire a service to remove some of that burden, but that doesn’t come cheap. 

Third, are you hosting Airbnb by the book? In places like New York and San Diego, they’re cracking down on properties because they’re greatly affecting the hospitality industry. Laws and regulations are always changing, so you need to make sure you’re following all of the rules and paying all necessary taxes in your area. 

Renting out your place on Airbnb may not be a full-time business endeavor, but make no mistake—it requires effort and attention to detail. Consider that before buying or renting a property on Airbnb. 

If you have any questions about Airbnb properties or want to take a look at some Airbnb properties on the market, feel free to give us a call or shoot us an email. We look forward to helping you.