When it comes to selling real estate, sellers, understandably so, often wait to sell at the height of the market to sell quickly and see a great return on their investment. Well, we’re thrilled to see that after a whirlwind of a year that was 2020, home sales in Southern California in April 2021 went up 86.2% compared to last April at the start of the pandemic. Keep in mind, in April 2020 we experienced a slowdown due to uncertainty surrounding the pandemic, but what a comeback!
Factors such as low mortgage rates, a growing demographic of home buyers (we’re looking at you, millennials), and a housing shortage have contributed to this high demand for properties all over the country and right here in Los Angeles and the Westside. So if you’ve been waiting to put your home up for sale, now is a great time to sell. Not convinced yet? Keep reading for stats that demonstrate just how hot the market has been.
1. Many homes are selling at breakdown speed
You can’t predict how long it’ll take to find the perfect buyer for your home at or above the asking price. It can take a few days or a few months. You never know. Well, that’s not something you have to worry about in this competitive market — as long as you price strategically. There are many qualified buyers out there ready to buy, which has resulted in record setting speeds. According to the National Association of Realtors (NAR), homes are selling as fast as 17 days, and 88% of homes sold in April 2021 were only on the market for less than a month.
2. Many homes are selling above the asking price
Finding a qualified buyer that can pay the asking price is fantastic. Getting an offer above the asking price? Even better. Due to the housing shortage, potential buyers outnumber sellers. CNN Business reported that by the end of April 2021, housing inventory was down 21% compared to a year ago and still remains at almost record lows. This has resulted in a very competitive market where sellers are getting offers above their asking price.
The LA Times reported that in March 2021, more than half of home sales in Southern California sold over the asking price. This is excellent news for sellers. Furthermore, cash buyers are also on the rise. The NAR reports that 25% of buyers are making cash offers compared to 15% a year ago.
3. Many home prices hit record highs
The market is hot all over the country. US home prices continue to climb, hitting new levels at unprecedented paces. An NAR report showed that the national median home price in April 2021 went up 19% compared to a year ago. This is the highest median price since the NAR began tracking data in 1999.
In Southern California and LA County, we see the same trend upward. In April 2021, Southern California median home prices jumped up 20.2% compared to the year before. The market hasn’t seen a leap that big year over year since 2013. In LA County in April 2021, the median home price went up 19% year over year and sales went up a whopping 101%. As a seller, all that extra money in your pocket equals more buying power towards your next dream home.
At all time highs: Playa del Rey, Marina del Rey, Westchester, Culver City.
Near all time highs: Santa Monica, West LA, Mar Vista/Palms
While it’s impossible to predict how the market will fluctuate over the coming months as the country opens back up and things return to somewhat normalcy, one thing is certain: now is a great time to sell. Not sure where to start the home selling process? Call us at (310) 907-6517 or email firstname.lastname@example.org for a free home value estimate.