Hello everyone, Nathan Derry here, your trusted Realtor from JohnHart Real Estate. Today, we're diving into the real estate market trends for Palms, 90034, for June 2024. We'll explore the absorption rate, average sales prices, and discuss the implications of the new California law AB12 on investors.

Market Snapshot for Palms, 90034

For June 2024, Palms, 90034, exhibited an absorption rate of 26%. Here's a detailed look at the market statistics:

• Active Listings: 31
• Sold Listings: 8
• Average Sales Price: $1,980,000
• Days on Market (DOM): 15

Understanding the Absorption Rate

The absorption rate is a critical metric in real estate, indicating the rate at which homes are sold in a specific market over a set period. An absorption rate of 26% suggests a balanced market, leaning towards a buyer's market, where there is moderate competition among sellers.

The New California Law AB12: Implications for Investors

As of July 1, 2024, California's new law, AB12, has come into effect. This legislation has significant implications for real estate investors in the Palms area and beyond.

Key Provisions of AB12

1. Stricter Rent Control Measures: AB12 introduces more stringent rent control regulations, limiting the annual rent increase to 3% or the rate of inflation, whichever is lower.
2. Tenant Protection Laws: The law strengthens tenant rights, including provisions for extended notice periods before eviction and increased relocation assistance.
3. Property Tax Adjustments: AB12 includes provisions for reassessing property taxes on investment properties more frequently, potentially increasing the tax burden on investors.

How AB12 Affects Real Estate Investors

• Rent Control: Investors may see reduced profitability from rental properties due to the cap on rent increases. This could make long-term investment planning more challenging.
• Tenant Protections: Enhanced tenant protections might lead to longer vacancy periods and higher costs associated with tenant turnover.
• Property Taxes: Increased frequency of property tax reassessments can lead to higher operational costs, impacting the overall return on investment.

Market Outlook and Recommendations

Despite the challenges posed by AB12, the real estate market in Palms, 90034, remains dynamic and full of potential. Here are some strategies for investors to navigate the new landscape:

1. Diversify Your Portfolio: Consider investing in a mix of residential and commercial properties to balance risks and returns.
2. Focus on Value-Add Opportunities: Look for properties that offer potential for value addition through renovations or strategic improvements.
3. Stay Informed: Keep up-to-date with local market trends and legislative changes to make informed investment decisions.

The real estate market in Palms, 90034, offers promising opportunities for buyers and investors alike. While the new California law AB12 presents some challenges, strategic planning and informed decision-making can help navigate the evolving landscape successfully.

If you have any questions or need assistance with your real estate needs, feel free to reach out. I'm here to help you make the most of your investments.

Stay tuned for more updates and insights!

All the best,

Nathan Derry, Realtor

JohnHart Real Estate

📍JohnHart Real Estate

📞(424) 303-0440

📧 nathan@jhagents.com

👨🏽‍💻 itsnathanderry.com

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