Westside DIGS | Digital Edition Online

December 10, 2021

DIGS is the premiere luxury real estate lifestyle magazine serving the most affluent neighborhoods in the South Bay and Westside of Los Angeles, California.

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Page 39 of 39

It is commonly known that local home values have increased significantly over the years. However, the extreme magnitude of the increase is not generally known. For example, those owners who purchased their homes during the last market bottom in 2011 have seen an average 95% increase in value. •ose who have owned their homes for a much longer period of time have an even greater percentage of increase and may be very surprised at the current market value. We all know that interest rates have been at near historic lows for more than three years and this low cost of money has stimulated demand, but what has really been accelerating price appreciation is the relative shortage of avail- able inventory for sale. In fact, it might be a serious understatement to simply say we're in a "sell- ers-market!" For some further context here, the strength of a "sellers-market" can be measure by comparing the average rate of sales per month with the available inventory of homes for sale in that period. It is generally considered that a market is in balance between buyers and sellers when that level of inventory is about 6 months. If the level reaches 7 or more months of inventory, it is considered to be a "buyer's market". When the inventory level dips below 5 months, it is a "seller's market". At the end of the first quarter last year, the inventory was up to 7 months. •is was due to the beginning of the Covid period and a stable inventory of homes available. At the end of the first quarter this year, the market shifted dramatically, with just over 2 months of inventory! As of December there is still only a 2-month level of inventory. •is reflects a remarkable increase in the number of homes being sold each month, approximately 50% higher than the average over the last 20 years. •e last time we experienced such a strong "seller's market" was in 2004-2005 when the inventory of homes available was about 2 months. Long-time owners may seize this market opportunity to simplify their life and take full advantage of selling their highly appreciated home…but of course you must consider the financial implications. Some owners may wish to leverage their new cash position by downsizing or moving to an area where the cost of living and state taxes are less. While others may benefit from the still-remaining $250,000 per person exemption from capital gains taxes, and also utilize the property-tax carry-forward to a lower cost home in a new development or anywhere else in California. Be sure to consult your personal tax advisor or financial consultant regarding your individual situation. Maybe you're a long-time homeowner who would like to benefit from the increased value but would hesitate to place your home on the market until knowing where you would move to, or until you've already purchased another home… …or were not planning on selling but are going through a divorce and unsure what the best options are for you? •e good news is there is always a practical and optimal solution for your particular circumstances and we have evolved solutions for numerous and unique situations. You've Made A Great Profit Owning Your Home For e Past 10 Years…Now What? Are you aware of your current value and equity position? The property information herein is derived from various sources that may include, but not be limited to, county records and the Multiple Listing Service, and it may include approximations. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without personal verifi- cation. Not intended as a solicitation if your property is already listed by another broker. Real estate agents affiliated with Coldwell Banker Residential Brokerage are independent contractor agents and are not employees of the Company. ©2019 Coldwell Banker Residential Brokerage. All Rights Reserved. Coldwell Banker Residential Brokerage fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Owned by a subsidiary of NRT LLC. Coldwell Banker, the Coldwell Banker Logo, Coldwell Banker Global Luxury and the Coldwell Banker Global Luxury logo service marks are registered or pending registrations owned by Coldwell Banker Real Estate LLC. CalRE#00616212 Michael Edlen DRE 00902158. Homeowners who are interested in learning more can request a FREE What Sellers Need to Know Guide by calling 310-600-7422, or writing Michael@EdlenTeam.com

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