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Buyer's Market vs Sellers Market: Which One Are We In Here In Los Angeles & Ventura Counties? - Part 2

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Mortgage and Lending with Los Angeles & Ventura Counties in CA

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.

BUYER'S MARKET VS SELLERS MARKET: Which One Are We In Here In Los Angeles & Ventura Counties? - Part 1  

 

photos courtesy of flickr:  peersrealtyQuint Cobb Foreclosure Relief

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 Donne Knudsen

Realtor® - CalState Realty Services

DRE#: 01364050 / NMLS#: 249822 

 

805.2069123

 

E-mail   My Blog  

Serving low-medium income individuals and families as well as first time buyers with both their real estate as well as their mortgage needs including down payment assistance

Los Angeles County  --  Ventura County

© 2010 - All Rights Reserved

Ken Barker RealtorĀ® GRI, E-Pro Certified
Dilbeck Real Estate - Burbank, CA

Donne - I hope the consumer can get a good grasp on your post vs. the media blurb out there. They paint the picture so different than we professionals and it is for ratings, in my opinion.

We experience not only FACTS but the buzzz in our day to day interaction with the consumer, agents and mortgage people.

If more people identified with the way you describe it we would have less folks sitting there waiting for something to come on the market and have a much better understanding of the Los Angeles and Ventura County Real Estate.

I will be interested to read what the rest of your followers across our states on AR have to say about their market. Some are in a sellers market but I am sure most are in a buyers market and I personally feel our Conejo Valley is in a stable market. My stats show identical from 2009-2010. And that is actual stats not thoughts.

Nice.....

Jan 14, 2011 09:47 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

I don't think buyers tend to think of marketplaces in terms such as buyer's market or seller's market. Most of them, being first-time home buyers, especially in today's market, just want to buy a home.

Jan 15, 2011 03:23 AM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Ken - I should have the next one up this weekend.  I've been looking at stats too and they are all over the place here in Los Angeles county - there are sellers markets and buyers all over the place.  While Conejo Valley may be flat, that most certainly isn't the story for the rest of Ventura county.

Elizabeth - Actually, I hear quite a few buyers around here (i.e. a lot of my clients) that think it's all a buyers market around here and that sellers should be happy to get their lowball offer.  Most will learn real quick that is simply not the case in many neighborhoods or price ranges.  Most of my buyers are in the low-end of the market and that price range is not necessarily a buyers market - quite the contrary; sellers pretty much call the shots in that price range.

Thx for stopping by folks; I really appreciate it.  Have a great weekend everyone.  :)

Jan 15, 2011 04:49 AM
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo
 

thank you very much for the informative and interesting post. I get so much out of the active rain network.

Mar 27, 2012 12:30 AM
Anonymous
Andrea Papke

I've been manageing properties for years here since 1998.  I'm now in my 2nd 42 unit building.  We have a bank-owned free standing Townhome 2 blocks S of me.  In 2007 in was $875,000.  Now they are asking $589.000.   Considering it is 3 bedrooms w/3 bathrooms I can see where some 2 income families would prefer to buy if they have the 60,000- down payment--as opposed to renting a 2 bedroom apartment, of course provided they are in a good job and wont be laid off.  I see a lot of bank-owned properties, and lost some tenant who bought.  They say the shadow market is moving out of these types of homes and into studios & 1 bedrooms.  A few years ago many people couldn't keep up with their morgage and would rent a room to person, plus the rent was high.

I'd say it's a buyers Market now provided the un-employment rate continues to drop & folks have a good way to make a living.  I would have never expected a mansion like the one I am describing to go for that price when it is in a good area, 3-level home, double car garage & built in 2004.  I see they keep looking for buyers & have open houses?  They had some families in their that had rented, but than they move on.  I'd asked the woman what happened and I'm sure you can guess.  Many bought back in 2007-2008 when they were giving people loans that didn't qualify.  So my guess is it will remain a buyers market if the economy slowly improves & for the lucky ones who have a good job.

Jan 29, 2013 02:51 AM
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