As the year is coming to a close, we need to reflect of what is going on currently in the Real Estate market in Southern California.
Looking at the current state, price of homes are down anywhere from 20% to 45% depending which Micro Market area you are looking at compared to 2007 prices. As a consumer you should be jumping from joy, that you have the opportunity to step into the Southern California's Real Estate Market.
Interest rates are hovering around 4.5% - 6% depending on the size of the loan and your credit worthiness. Again as a buyer this should make you salivate from joy either you can get more for your money or it will cost less to buy what you want.
Inventory is up so you have a better selection as a buyer. This is fantastic, you can go home, ask your Realtor to do the research for the comparables. As a consumer you can think about the largest financial decision, you do not need to write the offer on top of the hood of your Realtor's car. Here is your opportunity to get into that neighborhood you have been dreaming about for the past five years.
The best part is you are not competing with ten other buyers trying to outbid each other to get this home. There are fewer buyers out there; hence you can even negotiate on the existing asking price. This is a win-win situation being a buyer today.
There is a new Administration and a new Stimulus package around the corner. Here is your opportunity to protect your financial well being. Everyday I read something about how emotional the stock market is, as well as new scam artists stealing your hard earned moneys.
Logic, Reason, Commonsense tells you to step into the Real Estate Market and buy, but you lack the confidence. My advice is step out of the ‘Herd Mentality' of Real Estate buying. Do not wait until prices are going to start climbing again and you will miss out on such a great opportunity. Get your Confidence back and buy while you can still negotiate such fantastic price in great locations.
If you are a consumer who is considering buying or selling a home,investment real estate, vacation homes, or beach properties in Southern California, Los Angeles,Beverly Hills,Culver City,Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at EndreBarath@TheMLS.Com or visit one of my websites at http://www.endrebarath.com
 |
|
|
Endre has 13+ yrs local experience representing buyers & sellers in the greater Los Angeles Area.He is a Land expert & all clients love his candid style, he is also a Certified Relocation Specialist.
A new way to look for employment: The Beverly Hills way of finding a job!
Marina Del Rey Condominium Market Report for February 2009
Century City,CA Real Estate Market Report for February 2009
Playa Vista, CA Market Report for February 2009
Clarifying the $8000 Tax Credit for First Time Home Buyers
The Getty Villa in Malibu a Must See Destination! It's Free!
Foster Parents Needed for Kittens and Puppies!
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
Great post Endre! I think it's been longer than 5 years that people have been waiting to get into those more desirable neighborhoods. I have recently sold homes in the Pacific Palisades area for prices comparable to condo prices 5 years ago!
'Tis the season for the buyer and investor. All the best.
Dominic Naidoo
Dominic, Thank you for stopping by, have a great and prosperous New Year.
Hi Endre - Great information - Yes, It is also a great time to buy water front in Florida. I have some clients who are waiting for prices to go lower and I want to wish you a great 2009.
Good post Endre! There are some incredible buys in many areas and not as much competition. Liked the herd mentality example too. It's a good time to buy in my area also - the Monterey Peninsula. :)
Thanks Endre, and good points. A lot of buyers and lessees (in the commercial realm) are getting excited because the prices were soo high and now they are willing to get active again. Best of luck in '09!
Sharon, we all have some of these clients that are waiting till it gets lower...I am not so sure it will go lower if not at the bottom we are very close to it. Have a prosperous New Year.
Eileen, I love the Monterey Peninsula, thank you for your input.
Bradley, Thank you for your comments, Have a prosperous New Year.
Bravo Endre you must be reading my mind. Now I hope the buyers listen to you and your phone doesn't stop ringing. Happy and Prosperous New Year.
Lisa, thank you for your comment and may your words be Prophetic:))
Great post Endre!
My opinion, for what it's worth, is that it's always a great time to buy if you really want to move!
Investing? that's another story.
But with rates as low as they are right now, fence sitters with secure jobs should take advantage of the great deals out there.
Happy New Year to you my friend!
See you in 2009!
Craig, Thank you for your comments have a Happy and Prosperous New Year.
While it is true that rates are lower, they are not lower for all classes of loans making larger loans much more expensive than in the past. During the last few years the differential between conforming and jumbo loans was 100 basis points or less (1%). That has risen to 200bp or more disappointing those who thought they were in the refinance zone.
Please see my blog on the reciovery at http://mycredithell.com/partnerblogs/eric/blog1.php/2008/12/29/alightintheeconomicblackness
Purchases of homes is still probelmatic because of the continued projected home price declines. A great loan makes no difrence if the value of the property will decline 10% to 25% in the next 12 months.
Eric Lesin at www.mycredithell.com (esl@mycredithell.com)
Eric, Thank you for your comment.
If an individual has good to great credit and a good down payment there are great opportunities out there and I can provide quite a few ethical lenders that could help them. As well as if they are cash buyers. Re.: your point about declining market most people buy to live in a home and it is still better then renting, but that is the subject of a different blog.
HI Endre, so I missed the initial posting here, but the holidays were busy. I hope your holidays with family and friends were terrific. Now back to the post, this is very clear and well written as to why a buyer needs to act now. Thanks for the information about California too.
Gail, it is nice to hear from you and your valued input, hope besides being bussy your holidays were enjoyable as well. Have a Happy and Prosperous 2009.
There is a huge percentage of buyers who can buy now who would not have been able to even consider it a few years ago.
Hi Christine, I find this just great and I am also noticing these buyers are back in the market. I was out with one last week who missed out in 2004 because it was too frantic, now he is considering buying.