Is Demand Returning to Glendale Properties?
Being one of the oldest cities in greater Los Angeles, Glendale has long been known for its beautiful hillside homes and the high prices that come with them! This being said we did see quite a bit of over encumbered homes and distressed homeowners in this area and as a result property values have fallen, along with demand post-bubble burst.
New data released from the local Multiple Listings Service may suggest that buyers are beginning to move back into the area, and we may be at the bottom of the market for Glendale.
In the graph below we can see that based solely on quantity, the number of for sale properties in Glendale are at a 12 month low. Additionally, pending sales are tied for 2nd place year-to-date, and sold properties are up. As far as indicators of demand these three measurements are all in line with what an economist would expect to see before a rise in prices (as a result of scarcity).
However when we dig a little further things start to become confusing. Take a look at the table below. See anything out of place?
If you noticed that the average active price and the average sold price, are both near 12 month lows, then you have a sharp eye ;-). If demand is returning to this market why do the prices of the properties in the area appear to be declining??? Simple, take a look at the average price per square foot. It is just off the 12 month high. Therefore if the average sale price is low relative to the previous months, but the average price per square foot is high, then the properties that are currently being sold are smaller on average then their predecessors! Which supports our theory that demand should be beginning to return to this market!
If you are thinking of buying in this area, now would be a good time to get your offers in! Keep an eye on the number of houses for sale, because if there is one rule that is always correct it is:
Scarcity always drives prices up!
Please feel free to submit any questions you may have in the feedback form below, and as always thanks for reading!
After working with, and for, many different real estate firms, it became apparent to Harout that there was a major disconnect between what consumers needed/wanted and the service that was being provided to them. It was upon this realization that Harout founded and opened JohnHart Real Estate; and as the CEO/Principal Broker he has continued to break from the norm and redefine real estate with an insatiable appetite to give his clients the service and attention they deserve.
