Hello everyone, Nathan Derry here, your trusted Realtor from JohnHart Real Estate. Today, I'm excited to share with you the latest real estate market trends for Pico-Robertson, 90035, for June 2024. We'll examine the absorption rate, average sales prices, and discuss the implications of the new California law AB12 on investors.

Market Snapshot for Pico-Robertson, 90035

For June 2024, Pico-Robertson, 90035, showed an absorption rate of 19%. Here's a detailed look at the market statistics:

• Active Listings: 21
• Sold Listings: 4
• Average Sales Price: $1,528,000
• Days on Market (DOM): 14

Understanding the Absorption Rate

The absorption rate is a key indicator in real estate, reflecting the rate at which available homes are sold in a specific market over a given period. An absorption rate of 19% indicates a buyer's market, suggesting more supply than demand. This means buyers have more choices and potentially more negotiating power.

The New California Law AB12: Implications for Investors

As of July 1, 2024, the new California law AB12 has come into effect, bringing significant changes that could impact real estate investors in the Pico-Robertson area and beyond.

Key Provisions of AB12

1. Enhanced Rent Control: AB12 tightens rent control measures, capping annual rent increases at 3% or the rate of inflation, whichever is lower.
2. Stronger Tenant Protections: The law expands tenant rights, including longer notice periods before eviction and greater relocation assistance.
3. Frequent Property Tax Reassessments: AB12 mandates more frequent property tax reassessments for investment properties, potentially increasing the tax burden for owners.

How AB12 Affects Real Estate Investors

• Rent Control: Investors may find it more challenging to achieve high returns from rental properties due to the stringent rent increase limits.
• Tenant Protections: Enhanced tenant rights could result in longer vacancy periods and higher costs related to tenant turnover and compliance with new regulations.
• Property Taxes: More frequent property tax reassessments can lead to increased operational costs, impacting the overall profitability of investment properties.

Market Outlook and Recommendations

Despite the hurdles posed by AB12, the real estate market in Pico-Robertson, 90035, still holds potential for savvy investors. Here are some strategies to consider:

1. Diversify Investments: Balance your portfolio with a mix of residential and commercial properties to mitigate risks.
2. Focus on Value-Add Opportunities: Seek properties that offer potential for improvements and upgrades to increase their value.
3. Stay Informed: Keep abreast of local market trends and regulatory changes to make well-informed investment decisions.

The real estate market in Pico-Robertson, 90035, offers opportunities for buyers and investors alike. While the new California law AB12 introduces some challenges, careful planning and strategic investments can help navigate this 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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