Culver City Home Buyers Face Uphill Battle
Seems that every month I repeat the same thing, Culver City real estate prices hit new highs. For all current homeowners out there it's nothing but good news. Homebuyers, on the other hand, are becoming increasingly anxious as multiple offers and many all cash offers abound.
New listings are under contract within a week or two of hitting the market, and buyers’ agents are working overtime to get their clients offer accepted. For all the numbers on last month’s activity watch the video below. Home prices are now $100K above the previous high that was set back in 2007, before the financial crisis hit in 2008.
Condominiums and Town-homes
The picture in the condominium/town-home market is almost identical to single-family homes. The up tick since 2010 took a little longer to catch fire, check out last months numbers and watch the video above. As you will see, the average prices are now very close to the previous high. In fact prices in this section of the market have jumped up significantly in the last 6 months.
As single-family home prices continue to rise the affordability for the average buyer in Culver City is becoming more challenging again. This will only fuel the condo market to push higher as the lower end home buyers decide to try their luck with a town home or condo purchase.
In my opinion there are two major factors that can “stop this train.”
1. Should interest rates rise too quickly
2. Massive uptick in the number of available properties for sale
At the time of writing there isn’t any evidence that either of these events are likely to take place in the near future.