NE Altadena Real Estate: Advice for Buyers and Sellers in a Low Inventory Market

NE Altadena Real Estate: Advice for Buyers and Sellers in a Low Inventory Market

by Michael Dilsaver on May 6, 2013 0

Over the last few months there has been a lot of talk about the lack of available inventory or homes for sale not only in the NE Altadena real estate market but all of California. Although clients may believe that we are in an active market , and we are, the fact that there is a 50% – 60% reduction in the number of homes for sale equates to a 50-60% reduction in closings. Thus, well priced homes are selling quickly and often with multiple offers, but the percentage of homes closing escrow is about 50% less than one year ago too.

Lack of inventory is great for sellers, especially those who position their home well in the marketplace. A well positioned home includes: correct pricing, showable condition, reasonable accessibility, and proper exposure to the buyer pool. On the other hand, limited inventory is often a nightmare for buyers.

When the market inventory is low, serious and motivated buyers are often faced with not only limited purchase options, but also fewer negotiating tactics when offering on a home of their choice. If a buyer truly wants a property, they may need to meet all the seller’s demands as they relate to price, escrow period, contingency timeframes, possession dates, and other demands often made by sellers that a buyer may consider unreasonable in a different market. In a low inventory market the seller controls the negotiations.

Another nuance in today’s marketplace is the increase in number of “all cash” buyers. This results in many buyers removing the loan and appraisal contingencies in order to compete with true all cash buyers. With this tactic comes risk. Should the buyer not be able to obtain their financing or should the property not appraise, the buyer runs the risk of breaching the contract and losing their cash deposit.

It is true that inventory in the Altadena real estate market and throughout Los Angeles has been very low over the last few months. It is also true that in the last two weeks we have seen a slight reprieve with a greater number of homes coming on the market.

In the NE Altadena real estate market we have seen an increase in the number of homes offered for sale. On Caravan this past week we had 8 homes on tour in NE Altadena. This is more than double the number of homes offered for sale and on tour in weeks past.

Despite an increase in the number of homes available in the local marketplace, prices remain strong and multiple offers are still generated on the best priced inventory. Consistent with lower inventory we are also seeing sellers “pushing the envelope or shooting for the moon pricing.” Within a few weeks these homes either sell for less than their asking price or the prices are reduced before a sale is completed.

The real estate market is fluid and continuously changing. If you are a seller in the market, here is some advice:

• Price your home appropriately.
• Listen to the professional you have chosen to hire.
• Know that your highest sales price will always be generated through multiple offers.
• Price your home in that “sweet spot” which will get attention in the marketplace and earn you more than one buyer thus putting you in the drivers seat for negotiations.

My Top Property pick this week is 1876 Pepper Drive. First time on the market in over 40 years, Pepper Drive offers what I consider to be exceptional “bones” in a high demand location. Although the home has been lovingly cared for by its current owners, it is in need of updating. The overall layout, generous sized formal rooms, and overall all good condition provides a clean palate for its next owner to create the home of their dreams.

Based upon 2061 s.f. of living space and large 16,056 s.f corner lot, this home offers tremendous appeal in the marketplace. In addition to the many fine traditional features, I truly appreciated the dramatic mountain views visible from several rooms and especially the expansive view from the window in the kitchen. If I were a buyer in the marketplace in this price point, this home would be the top of my list!

7 Day Altadena Real Estate Market Recap

New Offerings:

962 Wapello St | $589,000 | 3/2 | 1214 | 6,528

2479 Glen Canyon Rd | $675,000 | 3/2 | 1394 | 8,262

1673 New York Dr | $749,000 | 5/3 | 2461 | 8,795

2315 Norwic Pl | $759,000 | 4/3 | 1814 | 13,996

1876 Pepper Dr | $939,000 | 3/3 | 2061 | 16,036

1200 Sunny Oaks Cir | $979,000 | 3/3 | 3371 |19,238

Back-up/Pending:

3015 Maiden Lane | $699,000 | 2/3 | 2164 | 7,541

1009 New York Dr | $1,595,000 | 4/3 | 3418 | 23,033

1755 Morada Pl | $425,000 | 3/1 | 1154 | 7,467

1932 Craig | $915,000 | 2/2 | 2216 | 9,044

Closed Escrow (sales price):

936 Beverly Way | $547,000 | 2/3 | 1140 | 6,936

1296 E Loma Alta Dr | $595,000 | 3/2 | 1476 | 7,185

1245 Boston St | $834,000 | 3/2 | 1773 | 7,561

1235 Morada Pl | 1,440,000 | 7/5 | 4056 | 11,650