Lomita Real Estate Market Report October 2022.

Hello, Lomita,

It’s October already. The start of the fourth quarter and the start of the silly season. The real estate market has and is changing, but is it really all the doom and gloom that we see on the national headlines? Well, stick around a few minutes and we’ll look at what’s happening locally and what you should be doing if you’re a buyer or seller.

Now, the median estimated home value here in Lomita is $962,000. That’s down 0.66% over the last month. It’s still up 1.31% over the last quarter and it’s up 8.12% over the last 12 months, up 24.85% over the last two years. And it’s still up a substantial 33.73% over the last 36 months. In comparison, the median home value in Los Angeles is $864,000.

In California, it’s $784,000. And for the entire country, it’s only $346,000. If you want to find out what your home’s worth right now, go to www.housesinsouthbay.com and get an accurate valuation. Hello everyone, Steve Huhta here from Houses in South Bay dot com, bringing you the Lomita real estate market report for October 2022. Remember to like, subscribe and especially share. If you find this of value and please comment below about what you think is going to happen in the market in the next 12 to 24 months or so. It really helps me with research and answering what you find important.

Now, looking back in September, we had 26 homes for sale in. Mm. Out of those 26 active listing, seven sold and we had another 12 pending. Now those seven that sold ranged from this two bedroom, one bath, 805 square foot condo that sold for $449,000 to this 2332 square foot, three bedroom, three bathroom on a 14,599 square foot lot that sold for $970,000. Of those seven homes that sold two went four over, asking price for went for less than asking price and one sold right at asking price.

Now we know that prices go up and down, and that it’s a factor of supply and demand and we’ll have to wait and see how things play out as this month’s supply and demand went down, keeping things about even. Whereas last month we had a much bigger drop in demand and supply.

Now we only had eight new listings last month. This is our supply side and it’s well below the average for the last five years. And on our demand side for the equation, which is the 12 pending, it’s it’s about normal for September and that seven that sold is below average for this time of year. So both supply and demand have dropped and Lomita, which could keep prices relatively stable for right now.

With this supply and change in demand, homes are sitting longer on the market at an average of 30 days, down from 38 days a month before. We can also see by this long term chart homes that 30 days on the market is much more of a historical average. But we’re so used to the quick sales of the last 2 to 3 years that 30 days feels like a long time.

Now, at the beginning of the video, I said I’d talk about what you should do as a buyer or seller.

Well, if you’re a seller, the good you’re sitting on a bunch of equity that you’ve gained over the last few years. You will now benefit from that appreciation when you sell your home. But as a seller, it’s important to realize that this is a new market. You must price and present your home properly to get the maximum out of it. That means taking some little extra time to clean and declutter at the very least, and do some minor repairs to make your home look fresh and well-loved for it. It’s also important to price your home correctly. You want maximum attention on your home when it’s new on the market. The longer it sits on the market, the more lowball offers you’re going to start to get. And you’ll have buyers thinking that there’s something either wrong with the house or that maybe you’re getting desperate to sell. Price it right to get those multiple offers right away. You can then leverage those offers against each other to get that maximum price.

For buyers, the good is, you have been trying to buy a home for quite a while now only to be outbid and lose your dream home time after time. Well, this market is changing for your benefit. With a lot less buyer competition. This is your opportunity to find a home that’s right for you and successfully get your offer accepted.

The bad. Yes, interest rates have gone way up over the last two years, but they’re actually returning to a more normal historical level. And besides, you’re not buying an interest rate, you’re buying a home. If interest rates continued to climb, you will have saved money by acting now. And if interest rates fall, you can refinance to that lower rate. If your plan is to live in the home for a long time, you should not be caught up on current interest rates.

But more of the good even, like I said, you’re buying a home. This is a quality of life purchase. Benefiting you and your family in many ways. Besides what it cost every month. Yes, it cost you more right now to buy. But once that cost is locked in and it’ll stay the same forever, unlike rent, which historically keeps going up here in Southern California.

Now my final thoughts are that rising inflation is actually a reason to buy a home purchase shields and stabilize is your largest monthly cost. Your housing cost against inflation. Rents will continue to rise with inflation, whereas a home mortgage will remain the same and build equity over time. History also shows us that once inflation is under control, you’ll probably see lower interest rates giving you a chance to lower those payments in the future. But don’t wait until then. Remember, when interest goes down and money gets cheaper, prices go up.

So don’t be afraid of all the media hype, no matter the state of the economy. You still need a place to live and build memories with your loved ones. Would you rather be doing that while paying off your own home or paying off your landlord?

So for questions on anything real estate. Contact me so I can help.

Bye for now.