Market Update June 2020
Westlake Village, Agoura Hills, Oak Park, Thousand Oaks and Newbury Park
By: Michael Rice | June 4, 2020
Released June 4, 2020
My View From Inside
To say the market is hot right now would be an understatement. After a two month lull, the shackles have come off and the buying frenzy has begun. Home prices shot up 8% in May and show no signs of slowing down.
What’s driving this? Pent up demand and low inventory. Home sales plunged during the lockdown as would be expected. Many sellers took their homes off the market or put off selling entirely. The buyers have come back in droves, but the sellers are only slowly coming back…but they are coming back.
Move-in ready homes (or close to it) are selling extremely fast and often with multiple offers. I recently wrote an offer on a home that had 7 offers in 2 days. However the homes that need a remodel are where the opportunities lie. Many home buyers are now working from home and in many cases, homeschooling their kids. The last thing they want to do is have a remodel going on for the next 3-6 months. But if you’re in a position to oversee a remodel, there are deals to be had.
To put yourself in the best position to win, be prepared to shorten (or remove) some contingencies. Have your lender fully approve you through underwriting so you can shorten or remove your loan contingency. For the hot homes, view the asking price as a starting point. No, we’re not seeing most homes sell for substantially over asking price, but 10-25k over for a typical home is common.
As they say in real estate, if you don’t like the market you’re in, wait 6 months. The frenzy will slow at some point, but chances are this is the state of the market until at least the end of summer and likely into fall.
JUNE 2020 CONEJO VALLEY REAL ESTATE MARKET UPDATE
- The median price of a Conejo Valley home was up 8% in May to $847,500.
- The number of homes for sale dropped 33% to just 579 homes for sale, but were up from the previous month.
- Only 56 homes closed escrow in May which was down 69% from 180 homes sold last May.
- Causing tremendous pent up demand that’s pushing home prices higher.
What Should We Expect Going Forward
- Expect demand to way out pace supply for the next several months.
- Multiple offers and bidding wars will be common for move-in ready homes.
- Expect a steady flow of new listings to start to come on the market this month.
- As more sellers feel comfortable letting buyers back in their homes.
What's The 2020 California Forecast?
According to the California Association of REALTORS,
- The median price of a home is expected to increase 2.5% in 2020.
- The number of home sales is expected to increase by 0.08%.
- Interest rates are expected to average 3.7% on a 30 year fixed mortgage.
Market Snapshot
Prices
- The median price of a Conejo Valley home was up in May at $847,500
- That’s now 1 consecutive month up.
- Prices are up 8% from $781,250 last May.
- And up $89,000 from last month.
Homes for Sale
- May ended with 579 homes for sale.
- Down 33% from last May.
- That’s 287 fewer homes than last year.
- And 101 more homes than last month.
Days to Sell a Home
- It took 47 days on average to sell a home in May.
- Down 16% from last May.
- That’s 9 fewer days than last year.
- And 5 fewer days than last month.
Interest Rates
Median Prices by City
(Prices are for April 2020. City data is two months behind. Keep in mind that low volume of sales can cause large price fluctuations.)
| City/County | # Sold | April 2020 | April 2019 | Y-T-Y % Chg |
|---|---|---|---|---|
| Ventura County | 635 | $595,500 | $585,000 | 1.8% |
| San Fernando Valley | 597 | $679,000 | $639,500 | 6.2% |
| Agoura Hills | 17 | $650,000 | $828,500 | -21.5% |
| Calabasas | 14 | $1,821,500 | $1,420,000 | 28.3% |
| Camarillo | 77 | $618,000 | $567,250 | 8.9% |
| Moorpark | 45 | $710,000 | $682,000 | 4.1% |
| Newbury Park | 33 | $719,500 | $685,000 | 5.0% |
| Oak Park | 17 | $715,000 | $765,500 | -6.6% |
| Simi Valley | 105 | $610,000 | $579,500 | 5.3% |
| Thousand Oaks | 69 | $735,000 | $740,000 | -0.7% |
| Westlake Village (Ventura County) | 8 | $1,039,000 | $949,500 | 9.4% |
| Westlake Village (L.A. County) | 14 | $1,137,500 | $1,265,750 | -10.1% |
| Woodland Hills | 52 | $777,000 | $792,000 | -1.9% |
