Hey, everyone! Nathan Derry here with JohnHart Real Estate, bringing you an update on the Mid-Wilshire market for August 2024. If you’re keeping an eye on the real estate scene in 90036, you’ll be interested to know that the absorption rate hit a healthy 52% this past month. But what does that really mean for buyers, sellers, and investors?

Breaking Down the Numbers

The absorption rate is a key metric in real estate that tells us how fast homes are selling in a given market. A rate above 20% usually signifies a seller’s market, and Mid-Wilshire’s 52% absorption rate certainly reflects a vibrant and competitive market.

Here’s what went down in August 2024:

• Active Listings: 25
• Sold Listings: 13
• Average Sales Price: $2,195,000
• Average Days on Market (DOM): 13

With homes selling in just 13 days on average, it’s clear that demand in this area is high. Buyers are actively looking for properties, and sellers are benefiting from quick sales at impressive prices.

What Does This Mean for You?

• Sellers: If you’re considering listing your home in Mid-Wilshire, now is a great time. The quick turnover (13 DOM) shows that homes are in high demand, and with the absorption rate at 52%, you can expect your property to attract attention quickly.

• Buyers: On the flip side, buyers should be prepared for a competitive market. Homes are moving fast, so it’s crucial to have your financing in order and be ready to act when you find the right property.

• Investors: For those looking at Mid-Wilshire from an investment perspective, the steady absorption rate and high sales prices indicate a strong market that could continue to deliver good returns.

The New NAR Commission Rule: What You Need to Know

Now, let’s talk about the National Association of Realtors (NAR)'s new law regarding commissions, which is making waves across the real estate landscape. As of early 2024, NAR implemented a policy requiring listing agents to publicly disclose the commission being offered to buyer’s agents. This is a significant shift from the previous system, where commission details were often only shared between agents.

How Does This Impact the Market?

• Greater Transparency: Buyers now have a clearer understanding of who pays for what during the transaction. This transparency helps prevent any surprises when it comes to fees and could potentially lead to more trust between buyers and agents.

• Pressure on Commissions: As commission structures become more transparent, there may be increased pressure on listing agents to negotiate lower fees. Some sellers may feel empowered to ask for reduced commissions, knowing that buyers are more informed about the process.

• Potential Shift in Buyer Behavior: With commission details available upfront, some buyers may be more selective in choosing agents, favoring those offering competitive rates. This could lead to a more consumer-driven approach in real estate transactions.

What’s Next for Mid-Wilshire?

With the market moving at a brisk pace and the new NAR rules shaping the way transactions are handled, it’s more important than ever to work with a knowledgeable Realtor. Whether you're buying, selling, or investing, navigating the new commission landscape and staying competitive in a hot market like Mid-Wilshire requires expertise and insight.

If you have any questions about the Mid-Wilshire market or how these new rules might affect your next transaction, don’t hesitate to reach out. I’m here to help you make the most informed decisions possible.

All the best,

Nathan Derry, Realtor, JohnHart Real Estate

📍JohnHart Real Estate

📞(424) 303-0440

📧 nathan@jhagents.com

👨🏽‍💻 itsnathanderry.com

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