Market Insight: June 2022

Hello Everyone,

This will be the first of many articles that I will publish to give you a close look at the Real Estate Market in the LA County area. I am currently the managing partner at Sync Brokerage Beverly Hills. We have offices in Studio City, Woodland Hills, Beverly Hills and Miami. With that being said, I have a lot of access to agents and the most up to date information from the agents who are actively transacting full time. I am not surprised to hear that agents are feeling shifts and that the market is "slowing down". We have been at such a furious pace in the last few years that any slowdown would be felt. So going from 1-5 days on the market to 10-15 days is causing some unsettling in listing agents. However, the market is frankly normalizing. In a normal real estate market it was very common for a property to be on the market for 30-60 days. All it meant was the agent had to work a little harder, price property accurately and work with buyers agents to get homes sold. It looks like we are headed in that direction and time will tell as we head into the peak market. Historically, June has been the month we experience the peak of new listings. I am curious to see if we make some ground with inventory as pending sales decreased to 12,959 compared to 19,718 in May 2021. New listings in comparison to 2021 is just shy of 279 listings. So if this continues, inventory will start to slowly increase. However, what happens to the demand? Well, mortgage applications YTD are down about 14% and this trend will continue as rates continue to climb. Supply and demand is starting to shift which might take some time but it will start to take an effect in the marketplace. As far as our office we are experiencing 60% less traffic to our open houses. Offers for properties down to 1-4 deepening on price point. A few listings are sitting on the market with no offers. Price points from $950,000 in Monterey Park to $1,600,000 in Granada Hills, CA. Agents sales are down across the board and a lot of buyers are pulling off the market due to fear. The conversations around bubbles and market crashes have taken over a lot of the real estate outlets creating doubt in buyers. June is going to be a fascinating month and will paint a clearer picture of what to expect moving forward. Have a wonderful month and be safe!!