Interest rates and home prices are increasing this year, offering opportunities and challenges for buyers and sellers.

How did the housing market perform this January? A couple of my clients asked me for a market update, so I wanted to share a quick comparison of what happened this January versus last January in the Burbank, Glendale, and North Hollywood housing markets.

Market slowdown. Last January, there were 94 closed transactions in Burbank, Glendale, and North Hollywood. This year, that number dipped slightly to 86, a roughly 9% decline. A big factor in this slowdown was likely the recent fires, which created delays in securing loans and insurance. Some properties couldn’t move forward until containment was confirmed, and it pushed closings back by about a week or more, depending on the area.

“On the pricing side, the market saw a notable jump. It’s an interesting shift, with buyers seemingly opting for higher-priced homes.”

Home prices increased. On the pricing side, the market saw a notable jump. The average home price in January 2023 was $1,030,000, while this year, it climbed to $1,219,000– an 18% increase. It’s an interesting shift, with buyers seemingly opting for higher-priced homes. 

Interest rates increased. Interest rates also edged up. Last year, they averaged 6.528%, compared to 6.843% now. It’s about a 4% increase. With inflation in focus, there’s hope that rates will ease as the year progresses.

Beyond the numbers, I want to take a moment to recognize the challenges the fires have brought to our community. I’ve spoken with clients directly affected, and we’re doing what we can to support them. If there’s anything you can do to help, even in a small way, it would make a difference. As always, I’m here if you have any questions. You can reach me at 818-953-5300. I look forward to talking with you.