To Sell Now or Later?
According to the MLS, 11 homes are currently for sale in Playa Vista. This is less than one month’s worth of inventory, which virtually ensures that if you properly price and market a home, it will sell quickly. Demand has lessened since the spring and summer with buying properties as cash flow rentals no longer making sense for investors and lower affordability as a result of higher prices and interest rates for owner-occupants. Now instead of there being 6-8 buyers for every well-priced, attractive home, there are 2-3. It’s still a seller’s market.
The question I have gotten quite a few times lately, which leads me to believe this condition is not going to last too long is, “should I sell now or wait until phase II comes out?” This question is not an “if” but a “when”. Clearly I cannot answer this question without knowing more about the howeowner’s goals and financial situation, but from a strictly competitive standpoint, wouldn’t you rather be competing with 11 properties than 30 or 40? That is a normal resale inventory level in Playa Vista and it could go higher than this by the summer due to move-up buyers entering phase II homes, especially if demand recedes due to rising interest rates and other options.
The fact that I’m being asked this question so much lately leads me to believe there are a lot of sellers out there, if not on the market yet, then soon. Move-up buyers looking to sell when new home deliveries in Phase II occur in the summer and fall will be likely putting their homes on the market at that time and others just looking to cash out after waiting out the market for years are poised to make their move. True, in a few years, higher comparable values from completed sales in phase II could push values higher and so could inflation. However, with supply and demand completely in sellers’ favor and hundreds of new homes going up behind those blue fences, if there is a decision entirely based on pricing and timing of whether to get out of your property either now or in a year, why wouldn’t you sell now?