Ralph's Gluten-Free Update - The LA Real Estate Market As I "Seez" it....June 8th, 2014
OK, Peeps. So we're hummin' along. Still quite a bit of activity in the market. Multiple offers on those properties that show well and are priced correctly.
Home prices continue to rise based on the low inventory levels. Interest rates took a slight dip last week for the first time in a while. This will continue to keep the market stimulated as the lower rates continue to make the payments for most folks affordable. Conforming loans ($417,000 and below) are averaging around 4.25%. I did, however, see a big drop in jumbo loans. One of the mortgage brokers I work with had posted a rate of 3.125% on one of their jumbo loan packages. That's phenomenal!
Still a sellers market. My advice right now to sellers is to be mindful that even though it's a sellers market, don't take anything for granted. Make your home show well! Fix those items that are noticeable or those that will make an impact on an inspection. Even though it's a seller's market, buyers will still run for the hills if the home appears to have a lot of deferred maintenance.
As a buyer, I would advise you to be aggressive. If there is a home you really like, you're going to have to step up to the plate. Don't even entertain the thought of "how much under can I ask?" or "How negotiable are they on price?". If you find yourself doing that, then you're probably not a true buyer in this market. And if you take that approach, I can just about guarantee that instead of a homeowner in 2014, you will become a statistic in 2014. Always remember that an appraisal is a contingency to the contract, so you don't have to worry about overpaying for a property. That is, unless the activity on that property is through the roof. Then it may be the case where you may have to pay over asking, and in some few cases, over appraisal, in order to get the property. My best advice on that is to analyze what the rate of home value increase is, and to figure out how many months you will gain that amount over appraisal that you've paid. Sometimes its only a matter of a few months. In that case, it might make sense.
Now play nice, and be good to each other......