Hello everyone, Nathan Derry here, your trusted Realtor with a focus on the dynamic Los Angeles market. Today, we’ll delve into the real estate statistics for Palms, ZIP code 90034, for May 2024. We’ll also explore the implications of the new California law, AB12, on real estate investors.

May 2024 Market Snapshot for Palms, 90034

In May 2024, the real estate market in Palms exhibited a healthy absorption rate of 35%. Here’s a quick breakdown:

• Active Listings: 37
• Homes Sold: 13
• Average Sales Price: $2,333,000
• Days on Market (DOM): 17

The absorption rate, calculated by dividing the number of homes sold by the number of active listings, is a crucial indicator of market health. An absorption rate of 35% suggests a balanced market, where neither buyers nor sellers have a distinct advantage.

The Impact of AB12 on Real Estate Investors

California's new law, Assembly Bill 12 (AB12), has introduced significant changes that investors need to be aware of. AB12 caps security deposits for residential leases, aiming to make housing more accessible by reducing the upfront costs for tenants. Here’s how it can affect investors:

Key Provisions of AB12

1. Security Deposit Cap: Landlords cannot demand more than one month’s rent as a security deposit for unfurnished properties, and two months’ rent for furnished properties.
2. Advance Rent Limitations: The law restricts the amount of advance rent that can be collected, which impacts cash flow management for landlords.
3. Tenant Protections: Enhanced protections for tenants in terms of deposit returns and itemized deductions can add administrative responsibilities for landlords.

Implications for Investors

• Cash Flow Management: Investors might need to adjust their financial planning due to lower upfront cash inflows from security deposits.
• Tenant Turnover Costs: With restricted deposit amounts, covering repair and maintenance costs between tenancies might become challenging, potentially affecting profitability.
• Attracting Tenants: Lower deposit requirements could increase the pool of potential tenants, reducing vacancy rates and ensuring steadier rental income.

Preparing Your Home for the Market

Given the competitive market in Palms, it’s essential to prepare your home to attract serious buyers quickly. Here are some tips:

1. Curb Appeal: First impressions matter. Ensure your landscaping is well-maintained, and the exterior of your home is clean and inviting.
2. Staging: Professionally staged homes often sell faster and at higher prices. Consider investing in staging to highlight your home’s best features.
3. Repairs and Updates: Address any necessary repairs and consider minor updates like fresh paint or new fixtures to make your home more appealing.

Navigating the real estate market requires a keen understanding of local trends and legislative changes. With the absorption rate in Palms at 35% and the introduction of AB12, investors and homeowners alike need to stay informed to make strategic decisions.

If you’re considering buying or selling a home in Palms or have questions about how AB12 might impact your investment strategy, feel free to reach out. I’m here to help you navigate the market with confidence.

All the best,

Nathan Derry Realtor,

JohnHart Real Estate

📍JohnHart Real Estate

📞(424) 303-0440

📧 nathan@jhagents.com

👨🏽‍💻 itsnathanderry.com

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