Real estate's Spring Buying Season is upon us. In spite of the current run of grey, drizzly days, rays of light are starting to shine on the local market. Just in the last couple of weeks we've seen multiple offers on almost every good property that's come onto the market in our Northeast Los Angeles area. And we're talking up to 22 offers on the extra special ones. (Others have had only 3 or 4, but, as we like to say, you only need one.)
We have been talking about the opportunities in the market for several years now, and many buyers have seized their deals and have been enjoying the benefits of home ownership, while many more were too fearful of jumping into a market full of scary economic predictions.
What has changed for the hesitant buyers? The good news for buyers is that mortgage interest rates are still low and prices for the most part are still less than the bubble prices of 2007. But if you own a property and have been waiting for the market to improve, this is the best time in the last 4 years to sell your house. Even today with bad economic news on the European economy and only slight improvement in the job outlook for the U.S., there is a new optimism in our little corner of the world.
According to Trend Graphics from Itech Multiple Listing Service, we are seeing the numbers of properties going into escrow trending up since the beginning of this year, and the days on market going down. The inventory of available homes is very low, and when there are more buyers competing for a desirable property, we generally see prices go up. The inventory has been low but not this low for the last year--so why are we seeing all this activity now and not before? Because all the bad news about foreclosures and other distress sales added to a general feeling of fear that the market would continue to go down and prices would never recover. Now, because of government intervention and a gradual shift in lender's handling of distressed properties (from forcing more foreclosures to facilitating more shortsales), we are seeing the distressed properties influence on regular sales shrinking.
We are not back to the bubble prices of 2007 and early 2008. But we are working our way to a better market and if you are a property owner and considering making a move, you will find a good number of serious buyers ready to make an offer. So, why not wait for even better times? Well, we just observed the 20th anniversary of the 1992 Los Angeles riots. If you were around back then, you may remember a number of factors that happened that no one could have predicted: the first Iraq war, the 1994 Northridge earthquake, we even had a tornado in Los Angeles during that time!
If making a move now could be a good option for you, consider talking with us. We will help you consider your options and if it makes sense to your own situation, we can make it happen for you.