2018 Ends with More Price Adjustments

Los Angeles, CA - Jeff L, our good friend and title agent at Fidelity National Title, updated us with some transaction numbers to confirm these last few months were the lowest transacted months since recovering from the recession over ten years ago.

We did start seeing signs after the first quarter of 2018. Especially in pockets that were contingent upon the sales of a main local market, we saw continuous price adjustments. Areas like Altadena or El Sereno, where buyers preferred Pasadena and were priced out, saw the biggest price adjustments. Through 2018, price adjustments of $75,000 on a $850,000 original asking price were not uncommon as homeowners found they had overestimated the value of their homes.

Condo and townhome appreciation also reversed its 2018 gains through this time. Though so many new construction in Los Angeles are the typical 3 story narrow lot developments in community subdivisions, detached single house number single family residences in tracts like these were a bit more resistant to the price normalization.

However, places that had continuous transportation development or great school districts were not as hampered by this. Builders of new construction have begun to increase incentives for buyers across Southern California.

So if you’ve been waiting on a slowdown to find a new home, 2019 is going to be a year with a lot less offers and more opportunities. Get qualified and Torcora will write your offer with you. Contact jason@torcora.com to start purchasing your property.