May Market Update For La Verne
If you’re thinking about selling your home, it's important to have a good understanding of what’s going on in the local market.
Knowing the most important data such as the average sales price, number of homes sold, and days on market will better prepare you to sell your home.
My monthly market updates showcases everything you need to know about local real estate trends.
😳 What happened to the Inventory!? 😳
I've been tracking the La Verne market closely since 2018 and this is the lowest inventory that I've observed since then. As of today we have an Absorption Rate of 0.68, which means that we essentially have about 3 weeks of inventory. This is EXTREMELY low when comparing it to a balanced market of 4-6 months of inventory.
The reason why low inventory is important is that it's keeping prices strong for sellers. If buyers only have a few homes to consider, and sellers aren't in a rush, sellers should expect to sell for a similar price or maybe even a little more than what the sales comparables are showing.
Interest rates have not helped affordability, but again, we just aren't seeing prices come down because the demand is still so high. Once the demand softens, we should see prices come down, but for now, that's just not the case.
Here are the stats:
Homes Currently Available on the Market- 13 (27 last year)
Pending in Escrow- 25 (30 last year)
Closed in the last 30 days- 24 (20 last year)
Average Days on Market- 29 (15 days same time last year)
Absorption Rate- 0.7
May 2022 to May 2023- Prices went DOWN 0.31%
List Price/Sales Price Ratio- On average homes are selling 4.16% higher than the list price at time of contract.
Median price in La Verne for the last 30 days was $976,500 according to our local MLS data. Compared to the same time last year, this is down 0.31% from $979,500.
According to Mortgage News Daily interest rates for a 30 year fixed are at approximately 6.5% today. They peaked late October at 7.37%. They came as low as 5.99% as of 2/2/23.
The LP/SP Ratio was up 4.16%. Compared to last year's ratio of 6.18% things have definitely cooled off, but not crashed by any means.
If I can answer any of your real estate related questions, or you are curious what all of this info means for your situation, please reach out. You may call me at 626-347-5987 or shoot me an email at [email protected]