47 Offers and only one comes out triumphant. Sound like 2006? It might very well be just like that. With prices still subdued starting off in the beginning of the year, rates maintaining their historically low levels, and confidence up after a tumultuous election year, the conditions were prime for what has unfolded. Now year over year prices have risen over 10% in many areas, with some areas hitting around 25% increases, and many neighborhoods surpassing prices seen in 2006/2007. Yet lending remains tighter than previous years, and no real stated income loans surfacing to signal the lax lending practices of the early 2000′s. Speculators have been quick to speak of bubbles (and mini bubbles) in the Los Angeles real estate market which may or may not be true. Certainly now, as we write this, it is a seller’s market. Multiple offers, pushing prices up, and low inventory for the numerous buyers searching for their homes, has made it a great time to sell. The unique attribute of this particular market, is that it is also a great time to purchase a home, but the competition is fierce, and patience a requirement, in order to traverse the landscape of buying the right home in a hot market.
As we enter the historically active time for home buying, it is hard to see the momentum of the market slowing down anytime before the end of summer. The increased affordability that low rates have offered buyers is bound to let up, but while it’s available purchasing remains a viable and excellent option for many, and it is apparent in the frenzied atmosphere of the market. More than ever sellers and buyers must be realistic, diligent, and prepared to take advantage of the opportunities, but not get caught up in unrealistic hype. Adjust your expectations and make sure you are surrounded by the right people to help guide you in accomplishing your goals, whether it is selling, buying, moving up, or investing.
OTHER Q1 2013 ARTICLES & INFORMATION