Inventory has been a driving factor in the Calabasas real estate market for the past several years. Now that interest rates are scheduled to rise we are seeing a massive sell off in the lower price points within the community. There seems to be a real rush for buyers to acquire homes and I feel that the end of low rates may be a driving factor. Higher end homes tend to attract buyers with larger equity cushions however homes in the $1.1m and under category tend to have buyers with large loan to value ratios. These type of buyers would be most affected by rising rates. In today’s market you can purchase a home with a loan amount up to $1m with only 10% down. Real estate in Woodland Hills, West Hills and other surrounding communities is drying up even faster than Calabasas as these communities have a greater percentage of properties in those lower price points.
Home prices have been at record high levels but sales were slower during the holiday season. Now as the limited number of homes for sale starts to decrease further buyers are rushing to purchase what homes are left at almost whatever price is available. Within the $1.1m and under category homes that sat without offers for months at have received multiple offers and new listings at record high prices attract buyers very quickly. The glut of inventory in Calabasas seems to be in the $2.5m and over range. Buyers in this price position are likely putting down a great deal of cash and are more hesitant to purchase at market highs.
Woodland Hills and West Hills offer a large percentage of the homes for first time buyers in the West San Fernando Valley. These homes which offer buyers good schools and more space than a condo or apartment have skyrocketed in price. Homes which were $600-$650,000 several years ago have exceeded $750,000 in many cases and sub $700,000 homes are very hard to come by.
If you are looking for property in Calabasas you will likely need to find homes off market in the Mulwood area as well as anything in the $1.3 and under range. Any inventory that comes to market sells immediately. The same is true for most of West Hills and Woodland Hills, especially in the better school areas. If you are considering a sale in any of those locations you should expect all time highs. Many sellers are actually surprised by what is possible. Higher price points in Calabasas and beyond will require exceptional marketing and a little more patience. The market is still very hot but is a little bit more patient as the prices climb.
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