Almost everything is up in Burbank’s real estate market. More homes and condominiums were on sale last month compared to the year prior, more homes sold and median prices continued to climb.
There were 66 single-family homes on the market last month, up almost 18% from 56 in January 2013, according to statistics compiled by Realtor Eric Benz, branch manager of Dilbeck Real Estate Real Living in Burbank.
Condos also saw a roughly 18% jump, going from 28 for sale in January 2013 to 33 last month.
While this is the second consecutive month that there’s been a rise in housing inventory in Burbank, that’s not the case throughout Los Angeles County, which continues to see a squeeze on the number of homes for sale, said Paul Habibi, real estate professor with the UCLA Anderson School of Management.
He said basically two factors are keeping inventory tight.
First, there’s a lack of land in the county where new homes can be built. Second, potential home sellers are watching rising median prices, which recorded a dramatic 20% year-over-year increase last year. They’re wanting to see if there’s a similar spike this year, even if it’s a more modest 15%.
“When potential sellers are seeing the market improve, they like to hang tight,” Habibi said.
However, he doesn’t see another surge happening. Instead, he predicts more like 6% to 8% price increases for the next two to three years.
The median price of a single-family home in Burbank rose about 14%, from $556,000 in January 2013 to $635,000 last year, according to Benz’s statistics. The median price for a condo was $414,000 last month, a 20% hike from $345,000 in January 2013.
Habibi said another factor thinning the housing inventory is tied to potential buyers who have become more affluent in recent years and would like to purchase a bigger, more expensive home.
“The move-up buyer doesn’t have a lot of options,” Habibi said, because, again, the number of homes for sale remains low.
Looking at sales, transactions closed on 45 homes last month, more than doubling the 22 sold in January 2013. Condo sales also grew slightly, from eight a year ago to 10 last month.
Habibi also said sales of high-end homes priced over $5 million are “on fire.” While there may not be many of them on the market, the ones that are for sale are fetching “egregiously high” prices, he said.
“It’s the widening gap of the haves and have-not,” he added.
Follow Mark Kellam on Twitter: @LAMarkKellam.