CAN’T AFFORD BURBANK? TRY NO HO OR SUN VALLEY!

Probably like you, I LOVE BURBANK! And I’ve loved selling real estate here for more than 32 years! But during my career, given the prices  Burbank real estate can command, especially in up or frenzied market cycles, Burbank can be extremely challenging for first time Buyers to crack! I was reminded of this again as I am about to list the home of past clients, Andy & Ellen Smith, who reside in North Hollywood. You see, back in 2010, even though we were still in the aftermath of the financial crash and Great Recession of 2008, the Smith’s still could not afford to buy in Burbank. A single family home was out of the question, and condos, while more affordable, were still just out of their reach. So…. as with several other first-timers I’ve worked with over the years, I suggested broadening their search to “better parts” of the Burbank adjacent areas of North Hollywood and Sun Valley.

Now compared to Burbank, you might be thinking, “Dan, there aren’t any better parts of No Hollywood  or Sun Valley!” Oh, contraire! Regarding No Ho, generally speaking, as long as you stay South or just North of Victory Blvd., you can find some decent product on nice tree-lined streets in safe neighborhoods! In Sun Valley, again, as long as you stay further South, and in the hillside area of Sun Valley (above Glenoaks Blvd.), which includes “Glencrest Hills,” you’ll find your RE dollar goes further when compared to Burbank! For example, right now in Burbank, there are only five listings priced under $700,000, with the least expensive going for $585,000! Compare that to North Hollywood, where there are 24 listings in the $600s or less, with the least expensive priced at $529k! Similar story in Sun Valley – 14 homes in the $600s or less, with the low starting at $495k!

Now don’t get me wrong, the Smith’s would have preferred to have bought in Burbank and enjoyed greater and faster property appreciation,  along with all of the civic amenities a independent city like Burbank can offer. But, approximately 9 years later, their North Hollywood on Cleon Ave., just above Victory Blvd., that they bought for $360,000, will be coming on the market for $600,000! Rather than continuing to pay rent, they bought and started to build wealth utilizing real estate! Do you know anyone who I can help to the same? If so, please contact me!

WHAT TO EXPECT FROM THE BURBANK MARKET IN 2019!

HAPPY NEW YEAR! And if you’re a Burbank homeowner, the real estate market continued to treat you well in 2018! How well? I pulled up lat year’s “Market Update” to you and here’s how the beginning of the last year compares to the beginning of 2019: Last year begain with the median Burbank single family home value being $778,000! Today, that value has continued to rise to $865,000! Same scenario with condominiums – last year, $516,000, this year we begin 2019 with a median value of $597,000!

In terms of inventory, that’s where the story is changing a bit from last year. We began 2018 with the lowest number of actively listed properties I’ve ever seen as a 32-year Burbank Realtor: 2018 begain with a mere 25 SFRs and only 9 condos offered for sale! We start this year with 63 SFRs and 21 condos listed. The reason behind the increase include rising interest rates – 30 year fixed rate loans have finally cracked 5%. And because of rising rates and the price points where we’re at, the Buyer pool has shrunk, consequently longer market times and larger inventories (still very low by historic standards!) Also, all of the year-end gyrations in the stock market and press coverage of a “slowing real estate market” in general, has pushed some would-be Buyers to the “wait & see” sidelines. Will prices start to finally decline in 2019? NO, at least not in my opinion! Burbank still remains a very sought-after market! However, the number of people who can afford our market is getting smaller and as a result I think our rate of appreciation will slow to a more modest 2-3%. What are your thoughts?

You can reach me through this site or please feel free to call me at (818) 437-0859

 

 

BURBANK REAL ESTATE MARKET SNAPSHOT (as of 9/1/18)

I haven’t talked about real estate inventory levels here in Burbank for several months. In fact, not since the beginning of the year, when I reported we began 2018 with astoundingly low 25 single family homes and a mere 9 condominiums on the market! This year also began with the median price for a SFR going for $778,000 and a smaller eye-popping median price for condos of $516,000!

Fast forward to the end of August, and we find a substantial increase in inventory (but still way low by historic Burbank market standards): Currently, there are 84 SFRs listed for sale, ranging in price from a low of $535,000, which gets you a 1BD, 1BA in a whole 779 sq. ft. located on Buena Vista; to a high of a “very optimistic” $3,000,000, for a 4BD, 4BA with just under 5,000 sq. ft. located on the “Hill” in the Burbank Estates (not Hallston development). Your condo buying dollar gets you a 1BD, 1BA unit in 690 sq. ft. for $434,000; to a top list price of $750,000 for a 3BD, 3BA unit in 1,583 sq. ft. As you might imagine, beginning the year with such a meager inventory supply, the law of supply and demand stoked even more multiple offers and further price appreciation. You can see this continued climb in values reflected in the current median prices: $856,000 for SFRs and $570,000 for condos! One other aspect of the current single family inventory: More than 35% of those 84 homes listed for sale are priced OVER $1 MILLION! However, given those prices and the fact that interest rates are sloooowly rising, I expect the Burbank inventory to build even further. As a lifelong resident of Burbank and a 31-year real estate professional who has seen all kinds of markets, these prices are amazing! All the more reason, if you haven’t had a thorough evaluation of the value of your real estate holdings in more than 5 years, please call me – KNOWLEDGE IS POWER!

REAL ESTATE MARKET EXPERIENCE (All Kinds) – PRICELESS!

In my last blog entry I wrote about the historic low levels of inventory we are currently experiencing here in the Burbank market. We began the year with a very meager 25 single family homes and 9 condominiums on the market. As of the first of March, those levels have increased to a mere 37 SFRs and 15 condos – not exactly a robust increase!

Because of these very low inventory levels, when “quality product” does come on the market, a “multiple offer feeding frenzy” quickly ensues. I experienced this recently on a listing I just closed. The property was in the very desirable “Rancho Adjacent” area of Burbank and is truly an impressive updated property, especially the front and rear yards. I always advise a Seller who is selling a property like this, in spite of instant attention and Buyer interest in writing offers immediately, to expose the property to this frenzied market for at least a week, hoping to develop multiple interest/offers which usually results in a higher sale price and more money in the Sellers’ pocket. In the case of my listing, that is exactly what happened! We ended up with four offers, with the winner containing very strong terms and a final sale price $60,000 over the list price! There are a myriad of other things that go into exploiting this kind of short inventory market. If you’re considering selling your home, let me put my 31 years of “all kinds of markets” experience to work for you!

2018 BURBANK REAL ESTATE MARKET – HOW WE START!

HAPPY NEW YEAR!  And if you’re a Burbank homeowner, you should be happy, as 2017 concluded with the median Burbank single family home value rising to an incredible $778,000! Likewise, if you own a condo in Burbank, as that median value rose nicely as well, ending the year at $516,000!

From a Sellers’ standpoint, the  “good news” should continue in 2018, largely due to a continuing basic “supply and demand” dynamic. In my 31 years selling real estate here in Burbank, I have NEVER seen inventory levels so low! As of the first day of 2018, there are a whole 25 SFRs currently on the market. Yes, that’s right, a mere 25! Even less condominiums – 9 (4 if you take out 5 very overpriced listings in a newly constructed building). Obviously, those numbers will grow as we enter the Spring/Summer selling season. But I don’t think we’ll be back up to levels that we’ve averaged for approximately the last 3 years, when inventory hovered between 75-90 SFRs and 25-40 condos (and even those ranges don’t represent a “normal” amount of inventory). Hence, competition among too many qualified Buyers chasing too few properties will keep values increasing, but in my opinion, more moderately given expected rising interest rates. Suffice it to say, not the best market for Buyers, especially young, first-timers. Of the current 25 homes listed for sale, a measly four are priced below $700,000 (and frankly, those homes, in my opinion, are garbage!) The least expensive condo/townhome is listed at $395,000 (on the market for 110+days), then a “fixer” offered at $445,000 and an overpriced unit going for $539,000 – that’s it! The remaining inventory is $700,000 and above!

Whether you’re considering buying or selling , please give me a call me to discuss this unprecedented Burbank real estate market and how you can cash in!  OR become a real estate owner who benefits from the Burbank community and its strong and seemingly ever-rising home values!

“ACCESSORY DWELLING UNITS” (ADUs) COMING TO BURBANK! (Part II)

Back in June of this year, I wrote here about new state laws, which took effect January 1st, which are intended to increase the supply of “affordable housing” throughout the state, including the city of Burbank. Known as “Accessory Dwelling Units” or ADUs, these secondary structures can be built in R-1 neighborhoods (except for R-1H areas, known as the “Rancho” here in Burbank) and are defined as follows:

“An Accessory Dwelling Unit (ADU) is an attached or a detached residential dwelling unit which provides complete independent living facilities for one or more persons separate from the main house. An ADU includes permanent provisions for living, sleeping, eating, cooking and sanitation and may be rented. A property with an ADU may not be subdivided and may not be sold as separate property and the property must be owner occupied” (occupying either the ADU or the primary residence, which will be verified by an annual inspection process conducted by the City of Burbank).

Along with the owner occupancy requirement, working under the auspices of an Interim Development Control Ordinance, or IDCO, the city is also attempting to refine the state laws to make them more compatible with and protect our beloved Burbank R-1 neighborhoods, while still providing much needed affordable housing stock. To that end, the Burbank City Council has already decided to limit the size of an ADU to only 500 sq. ft., thereby effectively reducing the number of potential occupants and increased parking demand in neighborhoods, along with somewhat capping potential rental rates by virtue of the ADU size. Also, the city has stipulated that ADUs cannot be rented for less than 30 days, so as to prevent the proliferation of Airbnb uses.

I’m only scratching the surface of the many aspects pertaining to this very important issue. Please feel free to call me or visit the City of Burbank website, burbankca.gov and search “accessory units” for more information.

BURBANK R.E. MARKET UPDATE – MIDWAY POINT, 2017

Now that we’re more than halfway through 2017, I thought it might be helpful to give you an overview of current Burbank housing inventory levels, median price points for the single family homes and condos, in addition to some insight into what to expect in terms of property price appreciation for the remainder of the year. First off, for the majority of the first half of 2017, inventory levels have been fairly consistent – fluctuating between 70 to 90 “active” SFRs listed for sale. Same story with condominiums – pretty steady, at about 20 to 35 units for sale. As of this writing, the numbers fall in line with those ranges: 81 SFRs listed for sale, with 22 condos offered. But as the Burbank market continues to go up, what’s interesting is the breakdown of prices and the associated growing lack of affordability for families wanting to call Burbank home!

As a lifelong resident and 30 year Burbank Realtor, it’s hard even for me to digest these facts: The median sales price thus far in 2017 is a mind boggling $813,700; up from $740,000 last year! And you see that reflected in the current inventory. Of the 81 SFRs currently for sale, only four (4) are priced under $600,000, with the vast majority, 51, priced at $800,000 and above! Same trend line for condos – current median price is $507,000, up from$479,000 in 2016. Current condo price range: $380,000 to $1,048,000, again, with only 22 units for sale! The cost of money is still relatively cheap; Buyer demand is still strong; and as discussed, inventory remains tight. Are these rates of appreciation sustainable? We’ll see, but I think the “train is starting to slow!”

What do you think? I’d love to hear from you and talk about it….

BURBANK GRAPPLES WITH NEW STATE LAW CREATING ACCESSORY DWELLING UNITS

New state laws, currently being reviewed and refined by the Burbank Planning Board and City Council may be bringing some big changes and some new types of residences to your Burbank neighborhood soon! Effective January 1, of this year, Assemby bill 2299 and Senate Bill 1069 went into effect governing Accessory Dwelling Unit regulations – more commonly known as rules governing detached guest houses or “granny flats,” pool houses and alike, garage conversions and “accessory dwelling unit” additions attached to existing single family structures. The regulations are an attempt by the state to “address a variety of housing needs and provide affordable housing options for family members, friends, students, the elderly, in-home health care providers, the disabled and others at below market prices within existing neighborhoods.”

As a 30-year Burbank real estate professional, property owner and life long Burbank resident, one of my biggest concerns with the new laws is the lack of control our local governing bodies have in imposing restrictions on these new accessory dwelling units or ADUs. Aside from addressing parking requirements, height, lot coverage and maximum unit size, the City  of Burbank really doesn’t have any discretionary authority to limit potential negative impacts to our beloved R-1 residential neighborhoods. However, one option the city does have, which I think is crucial, is to mandate that the property owner reside in either the main residence or the accessory structure. Recently the City of Burbank adopted an IDCO (Interim Development Control Ordinance) to study the issue and institute some initial guidelines and restrictions regarding these ADUs. To find updated information regarding this issue, go to the City of Burbank’s website: www.burbankca.gov, and search for “accessory units.” Or give me a call and I’d be happy to talk with you about this important change coming to Burbank’s residential neighborhoods.

BURBANK REAL ESTATE MARKET – WHERE WE’VE BEEN & WHERE WE’RE HEADED IN 2017!

(Posted Jan. 12, 2017)

As we look forward to the new year of 2017, I thought it might be helpful to look back a few years so as to give some perspective on where the Burbank real estate market has been in terms of values, where we are today and where we may be headed in the near term. First though, a quick inventory recap: For the majority of 2016, Burbank housing stock averaged less than a 3 month supply and bounced around between 80 and 100 single family homes listed and about the same spread for condos/townhomes, fluctuating between 25 to 50. Towards the end of the year, with news of rising interest rates, the rush was on and inventory levels were reduced sharply to where we are today: an incredibly low 61 SFRs and only 12 Cs & Ts listed for sale in Burbank! Now those levels will increase as we emerge from the Holiday/early New Year slow season, but will they increase substantially or will this inventory shortage – basic supply and demand – keep driving prices up? Which brings me to a quick recap of Burbank real estate appreciation…

In 2011, generally agreed to be the bottom of the market coming out of the financial meltdown in 2008, the median price (median being the mid point where half of sales are above and half below) for a SFR was $490,000 and $330,000 for Cs & Ts. As the economy and consumer confidence rebounded and rose, the market did as well! In the last 3 years, median SFR values have risen to $650,000 in 2014; $690,000 in 2015 and an incredible $739,000 to finish 2016! Same trend line for Cs & Ts: $415,000 in 2014; $450,000 in 2015 and rising to $489,555 in 2016! Does the party continue or are we in for a correction? Good time to sell or stay put? If you’re considering Buying or Selling in 2017, please give me a call and let’s have an honest conversation about the market what makes sense and is best for you!

“BURBANK HOME FINDER” My New, FREE App For Your Smartphone/Tablet!

Burbank Home Finder

 

 

Hard to believe, but 2016 is drawing to an end and the Holiday Season rapidly approaching. And so in the “spirit of giving” that the season represents, I’m excited to extend a real estate gift to you, your family and friends – it’s my new real estate app, called Burbank Home Finder! Designed for use on your smart phone of tablet, this completely free and state of the art app allows you to access real estate listings derived directly from the same Multiple Listing Service (MLS) that I as a real estate professional have access to. Most importantly, it features CURRENT MLS information/listings that is updated every 30 seconds, and as opposed to Zillow, doesn’t direct you to “preferred agents” that you don’t know or certainly trust, nor is it filled with dated information, ads and unhelpful features.

With Burbank Home Finder, all of your real estate needs are just one touch away! And by the way, you can use the app outside of Burbank as well, as the coverage area extends from the San Diego area all the way north to just below Santa Barbara and everywhere in between! Curious what the house next door is listed for? Ready to begin searching for your dream home, working of course, with me as your agent? Are you a Seller considering placing your home on the market and want to know its current value? Burbank Home Finder is a “must have” tool to help you in all of these scenarios! To get this invaluable and completely free app, simply go  to the Apple App Store, or for Android devices, Google Play and search for Burbank Home Finder. Or you can also download it from the homepage here, at dan4realest8.com. And please, once you begin using it, please let me know what you think or write a short review in the Apple and/or Google app stores.  Above all, please share and encourage your family and friends to download and use Burbank Home Finder as well! THANK YOU!