HAPPY 2023! As in past years, I like to report out where the real estate inventory levels are at in Burbank as we begin a new year. Suffice it to say, what a difference an activist Federal Reserve and an interest rate raising campaign make as we begin 2023! Recalling last year’s numbers relative to what we begin with this year, paints a pretty clear picture of what a higher cost for money/financing has done to the real estate market! Last year, with rates nearly half of what they currently are (3.50% – 4.25% range vs. today 5.625% – 6.50%), it’s no wonder the market has slowed, NOT CRASHED, with inventory levels increasing markedly!

Last year, we began 2022 with a whole 15 Single Family homes (SFRs) and a mere 8 condos listed for sale. This year, we begin with 44 SFRs and 18 condos/townhomes for sale! Now, relatively speaking, that might seem like quite a jump. But keep in mind, a so called “normal” market has historically contained approximately six months worth of inventory; today’s still only contains a little over one months worth – still not a lot of product to show would be Buyers! And despite the rate increases, Buyers are still out there due to relatively strong demand vs. supply, combined with Burbank’s desirability, convenient location, civic amenities and affluent employment sectors. The biggest difference between last year and today – in my opinion, is the “crazy factor” in the form of multiple offers bidding on almost every active listing that were merely decent, has moderated significantly! That said, so called highly prized property – superior location, tasteful/distinct appearance, quality updates, etc. are still getting plenty of attention. But instead of 10-25 offers, those “trophy properties” are now garnering more modest interest. In terms of pricing, WHICH IS ALWAYS KEY – you’re seeing list prices come down a bit and days on market increasing. And instead of seeing 20+% appreciation, this year, you can expect a flat to five, perhaps 8 percent appreciation rate, at most. We’ll see….