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Calabasas & Hidden Hills Insider – Local Market Update September 2021

Calabasas & Hidden Hills Market Update


Where Does Real Estate Stand?
Written by David Watkins Office

LOCAL MARKET DATA
While the pandemic did an
excellent job of teaching
us to expect anything, that
doesn’t mean we can afford to walk
blindly into the rest of 2021’s selling
season. Especially when we look at how
the last year has fared for the 91302
market:

In May 2021, Calabasas and Hidden
Hills saw 49 homes listed and 49 homes
sold. Then in June 2021, 50 homes
listed and 36 homes sold. There were
17 sold homes in June last year, when
64 homes were listed. And most recently
in July 2021, 57 homes listed and 32
homes sold. Meanwhile, July 2020 sold
more. Calabasas and Hidden Hills had
70 homes listed and 44 homes sold.

As we round out the summer
months, the three most recent months
showed a continuous increase in the
number of homes being listed for sale
yet a continuous decline in the number
of homes that closed. In comparison, the
same months a year ago in 2020 saw a
continuous increase in the number of
homes being sold as well as a continuous
increase in the number of homes that
closed, with a notable spike in July 2020
closings.

What do we do with these facts?
We keep in mind that going into 2020,
our housing market was sitting on a
good, healthy, and strong foundation
(50% average equity and excellent loan
underwriting), enabling it to endure
a whirlwind of a year. But we must
also remember that the market is not
indestructible, and that the future is
never certain. Let’s take a look at some
predictions for how the market will fare
the rest of 2021.

HOUSING PRICES WILL SHIFT
Right now, we’re still seeing very
high demand, which is great for sellers,
along with low mortgage rates, which
are great for buyers. With this high
demand and constrained supply, home
prices are unlikely to take any big hits
anytime soon. According to Realtor.com,
the median sales price here in
the Calabasas area is looking healthy
at an even $1,457,000. Thanks to low
mortgage rates, these numbers are likely
to persist even with a seasonal drop in
sales over the winter months. Here in
Calabasas, the trends indicate that 2021
will remain a sellers’ market.

ADDRESSING INVENTORY
There’s no dancing around this;
inventory is finite and we aren’t likely
to see the balance of supply and demand
change in 2021. Not only that, many
of our sellers are not sticking around
Calabasas. I am seeing more people
moving out of state than ever before,
and have personally had several seller
clients who have moved to Florida,
Texas, Arizona & New Mexico over the
last year alone! It seems that there’s an
ongoing trend of people moving out of
California.

What’s even more interesting is that
the amount of newly listed properties
hitting the market only declined by
a fraction of a percent nationwide,
indicating that the low volume of
inventory at a given time is due to how
quickly homes are selling, rather than
how many homes are selling. In fact,
when speaking strictly in terms of how
many homes are transacting, Realtor.
com shows that since March of 2021,
the average Days on Market in the
Calabasas area has been faster than last
year’s figures. And in July 2021, homes
sold 17 days faster than last year.
So, while there may not be a ton of
available properties on the market at one
time (which is what we mean by “low
inventory”), there are many properties
being listed and sold – they’re just selling
very fast.

FINAL THOUGHTS
Though we saw plenty of great
movement in July and months past, the
market has begun to slow its breakneck
pace. Since then, I’ve noticed a new trend
developing: Compared to the pacing that
we’ve seen throughout the pandemic,
some homes are sitting on the market
for longer periods of time. In turn, sellers
who are used to the hot market are now
experiencing some frustration with this
shift in pacing.

As I had anticipated, the second half
of the year is beginning to experience
a “cooling” of the market. Luckily,
this isn’t bad news for the seller—it
simply means that it’s time to adopt new
strategies. Sellers should focus on being
patient rather than expecting multiple
offers within a day or two.
Predictions aside, what I can definitely
say is this: I am prepared to maneuver
this market. The best advice I can give
to a homeowner is to stay informed and
to be sure to work with an experienced
agent when it comes time to sell. With
the world re-opening and the market
changing, it’s never been so important
to work with a seasoned professional. In
addition to properly preparing, pricing,
and marketing your home, our team has
the network and strategies in place to
secure you a replacement home quickly
and profitably.

If you are looking to make a move
soon, or would just like a good, thorough
estimate of your home’s value, give me a
call at 818-970-2946 today. n

Check out the full September 2021 Calabasas & Hidden Hills Insider here:
https://indd.adobe.com/view/63f2495a-f222-49b2-9bc0-f84db4178798