SoFi Stadium Opens to Fans While Billionaires Travel to Space
As we finished up the second half of summer and settled into fall, there was plenty happening around our city and country. Finally, after a year’s delay, fans were allowed into Sofi Stadium to cheer on their respective NFL teams. Both the LA Rams and the LA Chargers have been selling out as this 5.5-billion-dollar venue located in the City of Inglewood, is spectacular in itself. Its cutting edge design, plentiful amenities, and a 70,000 sq ft Oculus jumbo screen , provide an incredible, one of a kind, live experience.
While fans packed their way into the stadium, Elon Musk, CEO of both Tesla and Space X, and Jeff Bezos, founder of Amazon, packed themselves into a rocket propelled capsule and were jettisoned into space. Bezos’ flight was automated departing from the Texas desert near El Paso, and lasted 11 minutes. Musk’s flight lifted off from Cape Canaveral, FL and lasted three days with a splash down into the Atlantic Ocean. With the astonomical costs involved and Bezos spending 5.5 billion dollars for an 11-minute trip, many critics are questioning it. Given the extraordinary impact that money could have in the world, was that a good use of it?
One thing not under debate is the strength of the current real estate market. In the third quarter of 2021, 50,313 homes sold in Southern California. This was a .1% drop over the same period in 2020. This was also 4.7% lower than the second quarter of this year. The Inglewood Market Update Q3 2021 below, shows that 72 homes came onto the market and 39 sold. Here is what the numbers look like year over year.
Inglewood Market Update Q3 2021
|Inglewood||Q3 2020||Q3 2021||% Change|
|Average Sales Price||$714,674||$870,517||21.81%|
|# of Homes Sold||55||39||-29.09%|
|List Price $/SqFt||$542.61||$590.00||8.73%|
|Sold Price $/SqFt||$545.47||$609.51||11.74%|
|List Price/Sold Price||99.70%||103.39%||3.70%|
|Avg Days on Market||24||21||-12.50%|
In looking at the year over year numbers, we see the Number of Homes Sold dropped from 55 in 2020 to 39 in 2021, a 29.09% decrease. The other indicator that was down year over year was Days on Market, going from 24 in 2020, to 21 in 2021, a 12.5% decrease. Conversely, there were several numbers that were up year over year. Average Sales Price was up 21.81% going from $714,674 in 2020 to $870,517. Also up was Average $/SqFt, going from $545.47 in 2020 to $609.51, an 11.74% increase. Lastly, List Price to Sales Price was up 3.7%, going from 100% in 2020 to 103% in 2021.
In summary, these numbers show us that fewer homes sold year over year in the City of Inglewood, most likely to the increase in prices. And yet, they sold for more money in less time. This is very indicative to the two markets in comparing the year over year numbers.
The Road Ahead
With less than 75 days remaining in 2021, we are already looking to 2022. For the remainder of this year, we will see a continuation of the Q3 market through the end of Q4. Threats of increasing rates next year have many buyers finally getting off the fence. Lower rates equate to increased buying power in additon to the historically low cost of borrowing money. This in my opinion, is more important in the long run, than the price you pay for a home you truly desire. If you’re going to be in the property for at least 7 years, having an affordable mortgage in place is paramount. It allows for forced savings (monthly principal pay down), in addition to long-term appreciation. Both of these make the price you pay today less relevant years from now.
Looking to Sell
If you currently own a home in Inglewood, now would be a great opportunity to pull some of that equity off the table. That money could become cash reserves for a rainy day or put to work in a cash-flowing investment property. If you are looking to sell, now is a great time as both prices and demand are high in Inglewood and interest rates are still near historic lows. To see what your home could be worth in today’s market, visit Inglewood Home Values.
Are you interested in knowing what selling in this market would look like… or what your prospects are in the near future? Please call me at 310-403-7381 for a private consult. We can discuss your needs and available options and create a custom strategy to achieve your real estate goals.