A NEW DECADE, A NEW BEGINNING FOR THE 2020 BURBANK R.E. MARKET!

HAPPY 2020! A new year and a new decade are upon us! Yet when it comes to the dynamics of the Burbank real estate market, it continues to be the same story: Too many Buyers wanting to utilize cheap interest rates, chasing too few homes and condos, resulting in continued market appreciation/price increases – CLASSIC SUPPLY & DEMAND! And when it comes to active inventory in Burbank, going into my 33rd year selling here, I have never seen inventory levels so low! As of this writing, there are only 35 single family homes on the market, with the least expensive going for $699,000! Same thing with condos – a meager 14 listings, with the least expensive (a 1BD, 1BA in a whole 660 sq. ft.) going for $434,000! I can’t emphasize enough how low those numbers are! Of course, inventory tends to decrease as we enter the later part of the year and the Holiday Season approaches. If circumstances don’t dictate listing towards the end of the year, most people will wait until February and/or following tax season and on into the traditional Spring/Summer selling season. What remains during October through January of the following year are often what you might call the “dregs of the market” – properties that are in less desirable areas; on busy streets; in the main flight path of the Hollywood/Burbank Airport; have functional or structural problems; or, as is often the case, the Seller is unrealistic and stubborn in their price expectations. Seemingly this year, given the continued strong Buyer demand, even some of those “lingering properties” sold, further reducing inventory to today’s historic lows!

Can we expect this formula to continue in 2020? Unfortunately, YES! I say unfortunately because a healthy real estate market is a more balanced market, with more inventory available at various price points. With the lowest priced SFR currently available in Burbank listed at $700K, and little in the way of less expensive “condo alternatives,” many would be first-time Buyers are effectively being squeezed out! In my opinion, an increase in interest rates, and not a large increase, as so many people can barely qualify as it is, will be the main factor that begins to slow price increases and lead to more available inventory. What are your thoughts?