For you old-timers, this is not a new version of a Peter, Paul, and Mary song (Younger folk, ask your parents about who they are. Mary unfortunately died a couple of years ago, but Peter and Paul are still going strong).
Anyway, back to the article. As you may remember, our market has taken an unusual turn I recent months. In short, availability of homes for sale has dropped noticeably from last year, which in turn was lower than recent years. Well, one reason is that we appear to be staying in our homes much longer than we used to. I can remember just a few years ago, I would tell people that the average homeowner in Southern California moves every 7 years. Well, according to Attom Data Solutions, that is no longer the case. In 2012, for example, the average Los Angeles/Orange County homeowner moved every 7.11 years. This year, however, that has moved up to 9.59 years, which means the average homeowner stays in his home ABOUT ONE THIRD LONGER than just 5 years ago!
That is amazing information. But when we look at the specific time frames, we notice that 9.59 years ago was approximately the time when the real estate market peaked locally before dropping. In truth, we are just now getting back to 2007 prices. Many sellers just didn’t have much equity until recently. So the question is, is this a trend for the future or an anomaly related to market value changes.
My guess is that value has a lot to do with the longer time change. If that is the case, we can expect many more homes to come on the market soon, which could have a significant effect on values. We’ll keep our eye on the housing market and let you know how it is affected.
In the meantime, feel free to call 949-500-6365, email FrankDiLauro@cox.net, or access us through our website for all your real estate questions or needs