Realty Check

TIME FOR A REALTY CHECK

Raise your hand if you are overloaded with information about THE real estate market. Raise two hands if you are confused about the information.
Put your hands down if you are not in some way involved in real estate.
Where ever and what ever your situation is; we are all fascinated with THE real estate market.
If sellers want to sell and buyers want to buy; why are the numbers of sales so off the mark from last year? In fact for the first nine months of 2006 there were almost 16% fewer sales as per the MLS. And it is taking 26.58% longer to sell these properties. Inventory is up by approximately 10% although most of these properties have been listed and reduced. On the positive side interest rates are holding at less than 1 % off the 30 year low. The median price for homes in this period is 6.71% over 2005. Los Angeles has experienced an unprecedented run up in prices. What key figures in financing and economics continue to stress is that “housing is going through a correction that is badly needed” and that prices are rolling back to 2003/2004 levels and they were record years for us. Lower prices combined with still low interest rates should make housing more affordable to a broader number of potential buyers.
HOWEVER, and there is usually a HOWEVER, sellers who are not paying attention to the most recent comps in their immediate neighborhoods and who are pricing their homes unrealistically continue to pay their mortgages because buyers do have more inventory to choose from and are much more cautious about their purchase; as well they should. But if you are a buyer and you do find that gem be assured that someone else will as well. Good houses that are appropriately priced are getting appropriate offers and they are selling. Everyone needs to do their home work and of course that is exactly what Joe and I are good at. There is no crystal ball but we can lead you to your “next step in real estate.”