What in Heck is Going On With Real Estate in Chatsworth?

In my last blog we discussed the state of real estate in general.  So this is a good time to be more specific about what is happening with real estate in Chatsworth.

 Contrary to what you’ve probably heard, and maybe thought, people in Chatsworth are buying and selling houses, and they have been for a while now.  Which, not so incidentally, means lenders are in fact lending money.  They just aren’t giving their money away to anyone who can stand and breathe at the same time, as was the case a few years back.

 So here are some numbers.  Last month there were 39 new listings in Chatsworth.  A year ago there were 38 new listings in Chatsworth.  So?  Last month 24 homes sold in Chatsworth.  You want me to show you the money?  Okay, I will.  This past April the average sale price for a home in Chatsworth was $437,231.  In April, 2010, the average sale price for a home in Chatsworth was $538,500.  

 Let’s look at the situation from another perspective.  In March of this year the average sale price for a home in Chatsworth was $557,778.  So why was there a $121,000 decline this year from March to April?  Because right now the real estate market is weird, that’s why.  Now I could tell you because of consumer confidence, employment trends, interest rates, the stock market, the weather, gas prices, the alignment of the stars, or because of Charlie Sheen.  The bottom line is no one knows.  The real estate market is volatile.  I happen to prefer the word “weird”.

Here is what I DO know.  People are buying and selling homes in our neighborhood.  I also know that interest rates are as low as they are going to be in my lifetime, and probably in yours.  The prices of homes are, from any historical perspective you’d like to apply, cheap.  Will they get cheaper still?  Yes.  Or no.  Like I said, weird.

 Here is something to consider.  If you buy your home now and plan to live in it for, let’s say ten years, what difference is it going to make if you paid $426,000 or $436,000?  You got a great house at a great price, and it will undoubtedly increased in value by the time you actually sell it.  And if you’re selling your home this same perspective applies.  Maybe you sell your home for a little less than you could get next year.  Maybe not.  But if you do, and you buy your home right after, you make up for the difference in the price you pay for your new one.

 Of course, I’m a real estate agent, and I make my living thinking such thoughts.  So what do you think?