Real Estate Expert Carol Wolfe Weighs in on the Valley Market Now

What does the market look like right now? 

The market is currently very active. Although inventory is above its all-time low in 2023, it’s still at historically low numbers. A normal market is a five- to six-month inventory level. Currently we are averaging about a 3.5-month inventory level, which is up from a 2.5-month inventory level a year ago. While we are not seeing as many crazy multiple offers as we saw a year ago, we are still seeing very good activity.

What has been the impact of the federal interest rate drop of 0.5 percentage points in September?

Rates have actually gone up since the Fed drop in September. They were around 6% at the time of the drop, down from 7% just 90 days earlier. Unfortunately, they are now back up to the mid-6s. 

There are forecasts for another rate drop in November. Are you seeing buyers holding back?

Not really. Buyers are sophisticated and know that they can refinance when rates drop. They know that now that inventory is a little higher, it’s a great time to buy.

What is the status of home prices? 

Earlier in 2024 we were seeing year-over-year price increases of about 8%. That has dropped to around 3.5%. So prices are still going up but at a level closer to inflation.

In recent years, we’ve seen several areas well north of the Boulevard undergo lots of new builds and renovations, and sales prices above $2 million and higher. Which neighborhoods have seen the most dramatic changes?

Amestoy Estates in Encino, and the area of Encino north of the Boulevard and east of Hayvenhurst because of the popular K–8 school, Hesby Oaks. Other areas: College Acres and Walnut Acres in Woodland Hills and Melody Acres in Tarzana. With the new Rams training camp at Warner Center, the Village and the newly remodeled Westfield Topanga is also attracting buyers.

It is not just the attraction of having a larger, flat lot that is incenting people to move north. Homeowners insurance has become increasingly difficult to get for houses south of the Boulevard due to the threat of fire.

What is the best time to put a home on the market?

I tell clients not to pay attention to time of year and to sell when they want to sell. There is a general perception that spring is the best time, but that is not always true. In December, the inventory typically drops down to very little, as a lot of people are waiting until after the holidays to list. With few choices for buyers, that could result in a great price. 

The National Association of Realtors changed the commission structure for Realtors. Can you break down the changes and share what impact that has had? 

Nothing really has changed except buyers now know in advance how much their agent will be paid. Most sellers understand that buyers have a hard enough time coming up with the down payment and closing costs and are still paying the buyer’s agent’s commission. I like the fact that buyers now have to sign an agreement with the agent they choose to work with to view homes.