The Kahn Report Q3 TARZANA

THE KAHN REPORT Q3 | 2018 | TARZANA

Tarzana market activity cooled in Third Quarter 2018, noting fewer closed sales, more inventory, and an increase in price reductions.  At the moment, prospective buyers have a lot to consider, including a recent interest rate hikes, lingering concerns over new tax implications, and a continuing belief that prices will reduce. Despite a healthy economy and a robust stock market, the urgency to buy is diminished unless a property demonstrates clear value. Many buyers are taking a wait-and-see attitude and as a result sales declined and inventory spiked versus Third Quarter 2017.

 Closed sales fell 12% year-over-year, totaling 131. Price reductions rose 19% in Tarzana reflecting the hesitancy of buyers. Although active inventory expanded 14% year-over-year to approximately to 366 active listings, the average number of days on market declined to 33 days, down 29% from this time last year.

In addition, the absorption rate or supply of available homes rose to a 5 months supply of homes indicating that we are moving away from a seller’s market to a more balanced market. 

 If you have any questions regarding real estate please don’t hesitate to contact me directly at (818) 399-8818 or via email at janedaleakahn@kw.com.  (Data based on Southland Regional Association of Realtors October 2, 2018)

Overview | TARZANA

 CLOSED SALES
131
-8% YEAR OVER YEAR
-12% QUARTER OVER QUARTER
Closed sales declined 12% annually across all product categories. The condo/townhouse product category cooled -15% annually vs. single-family homes, which declined 6%.

DAYS ON MARKET
33
-29% YEAR OVER YEAR
-3% QUARTER OVER QUARTER
Days on market decreased 29% annually. Although there is more inventory on the market, buyers are still purchasing homes quickly if they are priced appropriately.

 INVENTORY
366
+14% YEAR OVER YEAR
+7% QUARTER OVER QUARTER
Inventory increased 14% annually to 366 listings suggesting that we are getting closer to a balanced market.

 MEDIAN PRICE S. OF THE BLVD.
$1.350M
+6% YEAR OVER YEAR
+4% QUARTER OVER QUARTER
Median price increased 6% annually as sellers continue to command premium prices for South of the Boulevard properties.

 AVERAGE PPSF S. OF THE BLVD.
$499
+4% YEAR OVER YEAR
+13% QUARTER OVER QUARTER
Average price per square foot increased 4% annually as South of the Blvd. properties continue to increase in value. 

 MEDIAN PRICE N. OF THE BLVD.
$560K
+7% YEAR OVER YEAR
+15% QUARTER OVER QUARTER
Median price increased 7% annually as buyer demand at lower price points remained strong and sellers continue to raise prices.

 AVERAGE PPSF N. OF THE BLVD.
$385
+11% YEAR OVER YEAR
+15% QUARTER OVER QUARTER
Average price per square foot increased 11% annually across product categories North of the Blvd. as price growth at the lower end of the market continued to rise.