HOW'S THE HOUSING MARKET?

20190715-MEM-1024x768.jpg

It's the number one question I get asked every day. "How's the market?"

With strong job numbers, limited housing, and growing households, economists are projecting prices will continue to increase slightly over the next couple years. Areas with development booms are seeing prices surge, while overall Los Angeles is expected to see modest gains. Surveys from numerous sources nationwide see property values following similar trends (see chart).

Construction continues to boom along metro lines and in areas with large corporations like the Westside and Culver City where Yahoo!, Google, Amazon, Apple, HBO and more moving in, and Mid-City and Crenshaw along the Expo and Crenshaw LAX transit corridor as well as North Hollywood, Koreatown, Downtown and Hollywood. Developers have proposed 12,000 new units along transit lines to feature high end and affordable housing.

Home Sales

In any market, Sellers who price their home correctly are able to sell at or above their asking price in the first few weeks on the market. The best homes are selling at 5-10% above asking, while on average homes are selling for just shy of their asking price at 99.65% of list price in June, with an average of 47 days on the market to accept an offer. Homes priced too high are sitting without offers and ultimately require an average of 8.5% in price reductions to gain attention for a final sale. 1 in 4 listings do not sell. It is critical that Sellers price their home correctly in order to sell their home. Make sure your home is ready and priced appropriately from day one. I offer a complementary consultation if you’d like some insight on how to get the highest and best price for your home. We now offer 0% financing on staging, landscaping, minor upgrades and renovations if you would like your home to show its best.

Rent vs. Buy

With the housing shortage affecting both rental and home sales markets, rents rival the cost of homeownership, encouraging more first-time buyers to enter the marketplace. If you are concerned about your down payment, in some cases, we may be able to structure your purchase to include some assistance towards closing costs or you may qualify for loan programs with as little as 3-5% down. There are also many pocket neighborhoods in Los Angeles that offer more affordable housing than higher priced neighborhoods nearby. I can help you find them.

Interest rates have fallen to near historic lows once again spurring home purchases and refinances. When you are ready, I can connect you with lenders that offer incentives towards closing costs or discounted rates as well.

Be prepared, the best priced homes still receive multiple offers from competing buyers. You need to bring your A-game to get a seller to accept your offer the competition. That means having all your ducks in a row to present yourself as the best possible buyer. Show them:

  1. You are qualified. You'll need a strong pre-approval letter from a reliable lender that your agent can vouch for and verifiable funds for your down payment and closing costs. Not all lenders are created equal. Sellers like to know your lender can get the job done quickly and have control of their own underwriting. I work with lenders who commit to getting loans done in 10-21 days. Talk to me about what to look for before getting pre-approved.

  2. You are committed to the purchase. Most Sellers want to know their home is going to someone who will care for their home. Let them know why their house is important to you. Offer terms that show the Seller you are serious about making this work: a realistic price, shortened inspection schedule, and usually a 30-day closing timeline or less.

  3. You are the best buyer to work with. Seller's want to know they'll have a smooth escrow. Show them how great you'll be to work with, that you have realistic expectations, and have a great team on your side. Buying a home is a complicated process. Having an agent who can prepare you for what to expect throughout the home buying process, and a lender who knows how to move your loan along is crucial to a smooth transaction. Sellers know this and will look for the right buyer with the right team supporting them to get the home sold.

I will help you with all of that. I have an excellent team of lenders ad inspectors to keep you on track.