Calabasas, CA

January 2008 wasn't such a great month for Calabasas real estate. But don't panic when you look at these numbers, it's not as bad as it looks at first glance. As I type this article there are 176 homes on the market in Calabasas. This translates into about an eleven months supply of inventory. It's a buyers market for sure! Although the average price dropped about 20% compared to last January's prices it looks like February's numbers will be better. There are currently 19 properties in escrow and several of these are over $2,000,000.

The rain has finally stopped and buyers are out in full force. I have been swamped by buyer calls ready to buy, and they're looking for "deals". My open houses have seen much more traffic and the skuttle butt among most agents is that they are busy too. I have also had several smart move up buyers list their homes because they understand that if they take a 10 or 15% hit on the sell side, they'll make it up plus on the buy side. I agree with this thinking and I'm encouraging buyers who are in a good financial position not to wait to move up. It's possible now to buy a home in Calabasas Park Estates, Mont Calabasas or even The Oaks for under $2,000,000. Just six months ago this would have been almost impossible.

The good news is if you are a first time home buyer and you want to live in Calabasas you can finally buy a home for under a million dollars. There are several homes in the Mulwood section of Calabasas that are listed in the $700,000 to $800,000 range. This is a wonderful neighborhood and is within walking distance to the elementary, middle and high school. There are even a few bank owned properties. If you're interested in a condo there are several on the market from just under $400,000 to slightly over $500,000. Many of these are within walking distance of the Calabasas Commons.

If you are thinking about selling your home and moving up in Calabasas and want to know how this market will affect your move, call me for an in depth analysis of your sell and buy numbers. I'll help you determine if this is the right time to move up or stay put.

January 2008 Calabasas Closed sales by Address

I think it's a great time for move up buyers to buy! "Huh?" you say in disbelief. Here's the math:

You own a home in Calabasas, it would sell for $1,200,000 now, but last year it would have sold for 10% more, say $1,320,000. You're not sure what to do, should you sell now and move up or wait? The house that you want to purchase is currently listed at $1,800,000. Only 2 years ago, this home would have sold for $1,980,000. We really don't know what the market is going to do, but we do know what we have right now.

Calabasas home prices are down approximately 10% from last year.
If you sell your Calabasas home now for $1,200,000 and purchase the larger home for $1,800,000 you'll be spending an additional $600,000 for the new home.

If you would have sold your home in 2006 for $1,320,000 and purchased the larger home for $1,980,000 you would have spent an additional $660,000.

That's a whopping $60,000 more then than now.

What are you waiting for?

If you are a move up buyer, there is not better time than now to put your home on the market and and start looking for your next home. You may not get as much for your house as you would in 2006, but you also won't pay as much for your new home.

Interest rates are the lowest that they've been in four years making it an even better time to make that move up decision.

Total number of home sales down 13% in 2007.

There were a total of 293 homes sold in Calabasas, CA during 2007, down 44 (13%) from the 2006 total of 337. Take a good look at the chart above, you can see that home sales were in line with 2006 figures until September. The time from escrow opened to actual close is usually 30-45 days, we can assume that the slow down in sales was actually two months earlier or July and coincides with the mortgage melt down. September, October, November and December were significantly lower in number of sales.

It's a Buyers market - with 9 months of Calabasas homes inventory.

As I write this post there are 172 active properties on the market in Calabasas. The absorption rate (average number of sales per month) is approximately 19* sales per month. This means that we have a nine month supply of homes on the market right now. Six months of inventory is considered a neutral market. Nine months would be considered a buyers market.

January and February will experience similar closed sales (approximately 20)

There are 15 Calabasas homes in escrow right now. These transactions would most likely close within the next 30 to 60 days. It appears that January and February will experience a similar number of home sales (approximately 19 or 20 each month).

The Outlook is for a moderate Spring and Summer 2008.

Move Up Buyers should start planning their move.

Home sales usually increase during the Spring and Summer and 2008 should be no different. Interest rates are lower than ever and buyers that are in solid financial shape will have no problem obtaining a mortgage. Smart move up buyers should seize this opportunity to sell their homes and move up to a larger and more luxurious home this Spring and Summer. This is the time to act if you are moving within Calabasas and are selling a lesser price home to move up. Whatever price concession you make on your current smaller home will be gained plus more on a bigger more expensive home.

First time home buyers with solid resources are encouraged to buy now.

First time home buyers that were priced out of the market before can now afford Calabasas. There are several condo's listed in the $350,000 to $600,000 range and single family homes in the $650,000 and up range. There are a few bank owned properties and short pays that make this the perfect time if you've been trying to move in to Calabasas but thought the prices were too high.

If you would like more information on Calabasas and the market conditions or how these numbers will effect you and your home purchase or sale, please call Tracey Thomas at (818) 652-2937.

*The absorption rate was calculated by taking the total number of sales for July through December (116) and dividing by 6 months. (Six months = July, August, September, October, November and December)