In Part 1, I offered a rather broad description of what a buyers real estate market was and what a sellers real estate market was and how important it was for buyers and sellers to know what kind of specific market they were in before buying or selling a property here in Los Angeles & Ventura counties.
In Part 2, I'd like to focus some of the specific criteria that determine a buyers market or a sellers market. Because of the size of Los Angeles and Ventura counties (especially Los Angeles county), we actually have quite a few markets going on here.
Because of the sheer volume of properties listed here in Los Angeles & Ventura counties, it becomes fodder for the media to automatically assume we have a buyers market going on without considering all the other criteria that makes up a buyers market. However, to actually determine what kind of market we're in; let's first look at the specific criteria that make up a particular market.
Two characteristics of a buyers market are when you have more sellers selling properties than you have buyers buying properties and the number of properties hitting the market is getting proportionately higher over a period time. This can be revealed in increasing inventory levels (how many months of inventory on the market) and how long it's taking for the properties to be sold, otherwise known as "days on market" (DOM).
However, it's also important to note the trend in sales prices in determining whether a market is a buyers market or a sellers market. Are the properties being sold selling for more or less than what they are listed for thus causing the median price for an area to rise or fall? If the prices of properties in a specific market are selling for more than the list price and the median price is increasing, those are characteristics of a sellers market because sellers appear to be getting more for a property than what they are asking for. The key word here being appear, which can be deceiving depending on other factors (more on that later).
One of the most important characteristics about a particular market is what are buyers and sellers willing to buy and sell a particular property for. Different types of buyers and sellers have different types of motivation to buy and/or sell based on what type of property is being considered. Buyers and sellers need to take motivation and property types into consideration before deciding to buy and sell.
A market saturated with a high level of distressed properties (like Los Angeles & Ventura counties) has certainly had a tremendous effect on the kinds of buyers and sellers that enter the market and many of these buyers and sellers have very different reasons for buying and selling property.
It's these reasons that can often have the most effect in determining to what extent a buyer or seller is willing to go to buy or sell as well as property conditions that they will or will not tolerate.
On that note, a buyers or sellers particular price range will often dictate a particular level of expectations that buyers and sellers can possess when buying or selling property here in Los Angeles & Ventura counties.
A particular price range can make all the difference in the world when it comes to what buyers and sellers can expect from the condition of the property to the negotiating process as well as the sales transaction of buying and selling a property here in Los Angeles & Ventura counties.
Please check out part 3, where I will apply the different market criteria to specific markets here in Los Angeles & Ventura counties. Buying or selling a home is one of the most important decisions someone can make. Today's real estate market can be really scary, which is why it's important to get as much information as possible before beginning the process of buying or selling a property here in Los Angeles & Ventura counties.
Buying and selling a property here in Los Angeles & Ventura counties is not a simple process and it's because it can get really complicated and convoluted, that buyers and sellers here need to work with professionals that will provide them with options and solutions that are best suited for their own needs. If you have any questions and/or concerns, please feel free to contact me, Donne Knudsen, at 805.2069123 or donne4loans@earthlink.net. That's what I'm here for and I would love to be able to assist you.
photos courtesy of flickr: peersrealty, Quint Cobb Foreclosure Relief
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