Los Angeles Real Estate Summer of 2010: "You gotta pay to play"
by Ben Nicolas
on Monday, June 21st, 2010 at 7:27pm.
Facts of Todays Los Angeles Real Estate Market
Prices are stabilizing, Bank owned inventory is going down, Short Sales are increasing which means long wait times, the fiasco in Europe is causing interest rates to drop to ridiculous levels, this will be the last hurrah for low interest rates, I think they will go up to the mid to high 5's and everyone will complain because they are too high which will slow down sales volumes and potentially have a downward effect on prices. The buyers that think they are going to wait to buy because prices are about to collapse won't get what they want, prices will yo-yo but obviously nothing like the drop we saw from 2005-2009. If you can't afford a house for sale in the Los Angeles Real Estate market you want to be in now with prices and interest rates where they are you should probably resign yourself to being a renter or move down a neighborhood in terms of price.
You need to know what effects local Real Estate values, there is no check box on a Fannie Mae Residential appraisal form for the unemployment rate in Spain or the Euro vs. the Dollar exchange rate. Real Estate is local.
Los Angeles is one of the nations most desireaable Real Estate markets for many reasons, weather, job base (despite the fact that we are at 10%+ unemployment right now, see Detroit Michigan for sympathy), beaches I could go on and on but southern california sells itself. I advocate thoroughly researching before you buy and working with someone that is competent that can help you properly analyze current market values but the time to buy is now. For those of you familiar with the whole "Buy low sell high" business concept, now is the time where you do the buying low part. There will continue to be good opportunities in the residential Real Estate market for awhile so there is plenty of time but you have to get in the game now and you have to "Pay-to-Play"