The median sale prices for single-family homes and condominiums continued to rise in Burbank last month, while the number of homes for sale declined, according to the latest real estate report.
The median price of a home increased from $595,000 in July 2013 to $687,500 last month, according to statistics compiled by Realtor Eric Benz with Dilbeck Real Estate in Burbank.
The median price of a condo also saw a boost, climbing to $415,000 last month, from $375,000 the same time last year.
However, Benz said the numbers don't tell the whole story.
“We're seeing a lot of price reductions,” Benz said. “It seems that sellers are listing their homes higher than the market is ready to bear at this time.”
He added, however, that homes which are priced right are still doing well on the market.
“Those homes that are priced well and that are in excellent condition are still seeing multiple offers,” he said, adding that buyers appear to be more interested in quality homes rather than fixer-uppers in today's market.
Bryan Ochse, broker/owner of Media West Realty in Burbank, agreed that proper pricing is vital.
“If [a home] isn't priced correctly, it is sitting out there longer,” he said.
He also said he doesn't expect median prices to continue to climb as dramatically as they have the past, moderating to 1% to 3% increases annually.
Also, the price hikes in the past have made it less profitable for investors to flip houses.
“The margins have gotten thinner,” he said.
Housing inventory retracted last month, with 59 homes for sale, down from 89 in July 2013. The number of condos on the market dipped from 24 a year ago to 22 last month.
However, home sales saw gains last month. Fifty-one homes sold this past July, a hike from 45 in July 2013. Meanwhile, transactions closed on 19 condos last month, a healthy jump from seven a year ago.