La Mirada Real Estate Market Price Trends

Twice a month, I will provide you with updates on La Mirada real estate prices and trends

Report 1 will cover monthly prices over the last six months.

Report 2 will cover the current trends of the overall La Mirada real estate market.

Report 2

In my last write-up, I discussed the possibility of a decline in real estate prices in La Mirada. From the table below, we see that six of the twelve neighborhoods had their recent six-month average price go down. This decline in prices brought up the following questions. What was the cause? Where are we going? What is the influence on the prices going down from the following? Supply and demand for the city. The California economy. The national influence of interest rates.

Let’s take a look at the city as a whole.

First, let me lay out the facts, backed by real data. Then give my opinion on where we are going.

The facts are: (See the supporting Table and Graphs below the write-up.)

1 Over the last 4 months, we have seen a price drop. This could be a correction or a trend. The Neighborhood table and the La Mirada price graph support this.

2 The Days on Market (DOM) has stabilized and is back to what it has been. (See Days on Market Graph).

3 Original Price vs Sales Price. The sales price is usually higher than the original price because multiple offers bid the price up. Over the last four months, the sales price was lower than the original price. This means that there are very few offers over list price and very few multiple offers. (See Original Price vs Sales Price Graph).

4 Sales vs Listings. The number of listings is stable for now, but we have had a four-month downward trend in Sales. (See Sales vs Listings graph below).

What does this all mean?

First, National Interest rates. Interest rates. Don’t count on them going down enough to affect sales in La Mirada. We are currently at 6.3%. They have been in this range for the past 2 years. Unless we go to 7 or above, they shouldn’t have much influence on prices going down. At the same time, unless they go to the low 5 percent range, I don’t think they will have much influence on prices going up.

Second, the California Economy. Even with the California economy just moving along, I don’t see a reason for it to have much effect on the La Mirada area at this time. What about the fact that a lot more people are moving out of California than moving in? I don’t see this as much of an influence on La Mirada either.

Third, the City Supply and Demand.:

The demand for the city has always been strong. La Mirada is a very well-run city with diverse activities for all ages, offering many options. Examples would be the Theater. Golf course, Senior Center, Regional Park, local parks, Sports facilities for Soccer, Baseball, Softball, Basketball, and of course, swimming. Because the city is so well-run and offers so much to its residents, there is strong demand for it. This, combined with the low number of listings, adds to the city's demand and helps keep prices up, or, in the case of the last four months, helps prices stabilize instead of continuing to fall.

This is supported by the first table below, which shows that overall prices in La Mirada over the last 6 months have increased by $12,000. But this figure is usually higher. And we have 6 of the neighborhoods in the negative. But some of these have wide price swings because of a small sample size of sales. These neighborhoods have strong demand due to limited supply, so we could see prices increase. We will have to see what happens in the next few months when they have new sales.

Where are we going?

It appears like we are going through a price correction or adjustment. If you look at the price graph, you will see that prices have fallen starting four months ago. But they have stayed relatively stable at a slightly lower price. We all know that sales have gone down because of interest rates. And the sales graph shows that this has finally started in La Mirada. What we need to see from the sales graph is that sales stabilize. If it continues to decline, we may see prices dip again. I will keep you posted.

If you have any questions, please feel free to call or email me.

714 342 7270.

tysutherland@firstteam.com