Wednesday, February 5, 2014

Multiple Offers Are Back Again

The title says it all...we are starting to see multiple offers back again.  And while we all thought that investment purchases were starting to fade away, we have seen a come back with those as well.  Just to clarify what an "investment purchase" just boils down to the fact that they typically purchase homes using all cash so being in competition with them when you put an offer on a house can be more difficult that being up against another purchaser that is using a loan.  So, what does this mean and where is it going to go in the near future with the real estate market?  Well, it means if you are thinking about selling and your home is at or under the 800k-900k and priced well, this will be a good time to sell.  This also means that, once again, if you are looking to make a purchase of a home within that same price range, you don't want to wait.  This time last year I was preaching to people to go ahead and buy...well just one year later and the average home around my area of LA (which is the valley) is now priced 20-30% higher.  I know that may be a hard pill to swallow for people who were looking last year but didn't buy, but I'll say it again...don't wait to buy if you are able to do so now. While I do not believe prices will take a steep upward turn the way the did last year, I do believe they will be on a slow but steady incline and there is no arguing that the loan interest rates are still at a fantastic low and they will also continue to rise in time. And if you read my articles regularly, you know that I always like to make a prediction of where the market is headed...and you will also know that I have yet to be wrong (yes, I'm blowing my own horn there) But you will see again, I predicted that February would be the time we would start to see some good action in the market again (refer to my article from January ) So, my professional opinion is that the market will continue to stay strong this year and prices will be on the rise, although nothing as dramatic as last year. I think now is the best time to buy and waiting till the summer will put you up against multiple offers.  This coming summer will be a busy one.  Procrastination will not be your friend in the market this year so, jump on it! And if you are thinking about selling or buying, give me a call.  I am always here for you.