Midyear assessment of the Greater Los Angeles Real Estate activity!
Midyear assessment of the Greater Los Angeles Real Estate activity by Endre Barath, Jr. !
I have been asked by potential buyers and sellers what my assessment of the current Real Estate Market consist of in the Greater Los Angeles area. The question seems simple, but the answer is not.
Since late last year the Greater Los Angeles Real Estate Market has been on a rebound from very flat two year period, due to mainly the economic down turn and the meltdown of the Real Estate Market Nationwide.
From January to about June of this year the consumer confidence returned with a very robust purchase activity of mostly single family homes on the West Side of Los Angeles. There were clearly a lot of foreign buyers with all cash transactions fueling this activity. The buyers understood that interest rates would not be staying at these artificially low rates supported by the Federal Government and the signs were clear that rates will be going up. Hence it was clear that this is the best time to buy before rates are going to increase. Unfortunately sellers were not on the same page as the buyers and were reluctant to list their homes especially those who tried in the past few years and their home did not sell. This created a huge shortage of inventory. Simple economic principle of “Supply & Demand” raised purchase prices anywhere from 5% to 25% depending which micro market of Los Angeles you were trying to get a property.
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As of the beginning of July, 2013 I have noticed that inventory has started increasing in the Single Family Residences on the West Side of Los Angeles. These in conjunction with about a one per cent increase of Interest rates have slowed the price increases as well as the sales activities to a more sustainable level.
Now what makes it interesting to watch is the headlines on the Internet and all the Media Outlets are sending contradictory information. This of course confuses potential buyers as well as sellers. One head contradicts the other. One paints a Doomsday Scenario and the other total Exuberance. So what is the reality?
I find that Reality consists of a myriad of different situations. Just as an example: There is the First Time Buyer market, then there is the Investor Market which consists of either Income Properties (units) , then there are the small investors who are buying individual units to lease out and then there are the Developers who are buying to either tear down , remodel or add on to a Single Family Residence. Now multiply this with a Price Variance for all these people I mentioned. Los Angles consists within a fifteen mile radius of price ranges from a low of $160,000.00 to a high of $100,000,000.00. Hence simply stated depends on a lot of variables what my answer will be and frankly it depends what price point and what type of Real Estate you are considering will also determine the answer.
If you went with the headlines, then my answer might be contradictory and the difference is I would be able to back it up with factual data.
Now to the short answer as I am writing this blog post, I have two properties in escrow and I am negotiating two offers for two different buyers and that is a huge difference of what the market was like even last year at this time.
So with that said, if you want to know how the Real Estate Market is in the Greater Los Angeles area, please reach out to me directly. If you are wondering about other parts of the country reach out to your local Realtor and ask for his or her input.
Now if you are considering buying or selling in the Greater Los Angeles area, feel free to reach out to me directly!
If you are considering buying or selling a luxury home, or an ultra luxury home, or luxury investment real estate, or luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 or email me at firstname.lastname@example.org or visit one of my websites at https://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations