Let's get to it....my clients and friends have been asking "How is the real estate market?" and I bet you may be curious as well. I also bet there is a chance you'll be surprised by the answer.
Just to be straight forward, I know when people ask "How is the real estate market?" what they are really asking is "Are prices going up, going down, or staying the same?" So I'll start with that question but there is a 2nd part you may want to read to better understand this in its entirety. So read to the end if you want to understand the whole bit of this.
First, houses that are not considered Luxury prices are actually still selling well and in a lot of cases, selling in multiple offers. This is the part I would assume may be shocking for most. But it's true. If houses are priced well and if photography and videography are professionally done and the home is marketed appropriately then we are seeing multiple offers on a number of these homes. Now let's talk about why this is....
For the most part, house prices are holding steady and strong even in these uncertain times. While this may be the case, the second part of the question "How is the real estate market?" plays a part in this. From an economic point of view, real estate sales have dropped 40%. This means the number of homes sold at the first quarter of this year are now 40% less today. So of course, there has been an impact on the market but maybe not in the way you were originally curious about. But here is how these two factors influence each other. There are about 1/2 the homes for sale today that there were just 2 months ago. And it was already a market where we needed more houses for sale to accommodate the buyers looking. Now we have this set of circumstances where we have an Extremely low inventory of homes, combined with an extremely low choice of interest rates on buying homes and we still have buyers looking to buy. This is why we are seeing multiple offers on homes and this is why if you were thinking about selling, you should definitely be still considering doing this if you feel safe doing to with correct precautions in place.
If you are curious about precautions that are in place and what agents are being asked to do to help you buy or sell, keep reading. Let me start by saying that you should have an agent that is following current guidelines set by your city or county to protect you, the client as well as all other parties involved. If you are selling, agents have the option of hiring professional photographers and videographers that can create virtual tours of your home. Buyers will really appreciate being able to see homes this way so they can pinpoint only the homes they are very serious about. If a home can be shown in-person, sellers will need to vacate the home and the buyer's agent along with only 2 prospective buyers who currently live in the same home will be able to be present for this. Your agent will likely make the home available for the buyer to see while standing outside the home then tour the home themselves ones the client has stepped outside. Booties, gloves, and hand sanitizer will likely be provided if not required. Appliance, drawers, and closets may be inaccessible to view during a showing. There will be a disclosure that both buyer(s) and seller(s) are required to sign to protect everyone. Buyers will be required to have a lender's approval letter as well as proof of funds for their agent to have on hand as the seller's agent will be requesting this to verify that only serious/qualified buyers are viewing the home.
So, is this a good time to buy or sell? I'll say this....anyone who answers questions like this is giving you an opinion and you should take it as such. In the 9 years I've been in the business I've, not only been writing blogs but also being a part of many major local and national interviews regarding real estate. Over these years I've been spot-on about where I think things are headed. So here is my answer. Today is a great time for sellers. With a little availability to choose from and prices still remaining healthy, you are in a good spot. Buyers, I've said this 100's of times to many clients over the years...the time to buy is when you look at your current situation and ask yourself "Can I live here another 5-7 years?". If the answer is no then you should look at buying. If the answer is yes, then hold off and see what a 6 months to a year from now looks like. After that, make your decision. (Keep in mind, rents in LA are not only more than most mortgage payments but most also don't have restrictions on raising them.) In 6 months I believe we will start seeing things shift a good deal. Homeowners may need to sell for financial reasons. There may be short sales due to job loss. And owners may be asking themselves that same question of "Is this where I want to live in 5-7 years?"
If you are thinking about buying or selling, call me today. Ask me A LOT of questions. Let's go over everything together and see if it's right for you and if it is, let's do this together in a way that is successful and safe.
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