I was reading the real estate section of Investors Business Daily, Friday November 30, 2007, and I see this interesting chart.  Two charts to be correct.  One chart shows the two year change in values from September 2005 to September 2007 in different metro areas across the nation. The other chart shows changes from January 2000 to September 2007 in the same areas.  On the two year chart Los Angeles is right in the middle showing values have gone down slightly or stayed even in the last two years.  On the second chart Los Angeles is in first with 150% change in values since 2000.  What does this mean for you the consumer?  The real estate market has to be studied by location.  The media gives an overall picture of what is happening nationwide and leaves out the fact that there are markets where real estate is still booming. 

Another fact that they continue to leave out is that over the long run real estate always continues to go up.  If you are buying a home to live in there are a number of reasons why you should not worry.  A couple of reasons are that your payments can qualify for a tax write off* and that the housing market has a historical record of increasing values. 

Many first time buyers are discouraged by what they hear on the news.  They also fear the committment of a mortgage.  The facts are rents continue to rise because landlords are capitalizing on the fact that there is a high demand for rentals as more homeowners become tenants.  There's also a lower supply of rentals because of the many condo conversions.  Certain areas have held up their values such as Burbank, Glendale, and Pasadena. 

My point is that you don't buy stocks because the news begins to report that the stock market is going up, you consult with a stock broker or financial planner in regards to which stocks and which industries.  The same goes for real estate. Consult with a realtor that specializes in first time buyers.  Most realtors are going to welcome the chance of sitting with you and consulting you in regards to where the housing market is trending in the area that you are interested in. What will this consultation costs? Most of the time it will not cost you anything but your time.  Most realtors get their commission from the seller when they've represented you in a successful sale.  Call a realtor and remember that there's no obligation.  Interview a few and choose the one that you are most comfortable dealing with.  We as realtors have very strict ethics that we follow and we also have a fiduciary duty to our clients.  Your realtor should not be a pushy salesperson but your real estate consultant.

If you have any questions please feel free to e-mail me @ mvillagran@cfgrealty.com or call me @ 818-242-4777 ext. 119.  If you're looking to buy in the Pasadena, Glendale, Burbank, or San Fernando Valley area I can help.  If you're looking in other areas I can help you find a qualified agent.  

*consult your CPA.