Real Estate Bounceback in 2016?
Feb 15, 2017 11:04AM ● Published by Jeanne Fratello
Additionally, the number of home sales ticked up after three years of decline, from 359 in 2015 to 391 in 2016.
However, notes Realtor Dave Fratello, author of MB Confidential, the rise in median price was only $15,000 over 2015, less than an 1% increase.
"That's a significant leveling out, after a price trend that had been all uphill," said Fratello.
Fratello added that while prices were rising in recent years, the total number of sales was actually declining.
"I've speculated quite a bit about whether declining sales and rising prices might be traceable, in part, to very tight inventory numbers," said Fratello. "There were fewer homes for sale, therefore there were fewer sales, and people were willing to pay more."
However, continued Fratello, with the steady increase and lingering of inventory in 2016, the result was a nine percent increase in sales."The actual figure of 391 looks a bit more like the recovery years of 2010 and 2011 than the red-hot years of the recent local run-up," said Fratello. "If prices stop escalating and inventory holds at higher figures, we might see more sales this year."
Fratello did not speculate in the post about how prices might shape up in 2017.
For the complete analysis of 2016 figures, see 2016 Saw Bounceback in Sales, Higher Median Price on Manhattan Beach Confidential.