Dear Friends, Family & Clients,
Home affordability in Los Angeles County has plummeted to about twenty percent. You’ve heard the saying; “History Repeats Itself” well we should all be aware of what happened the last time prices rose at these rates for three years in a row. Home prices rose twenty-eight percent in 2006, twenty-two percent in 2007 and eighteen percent in 2008. This was followed by a nearly fifty percent drop in prices in many communities in the subsequent years.
Honesty has been a hallmark of our real estate career and our advice has always been based upon the truth and serving the best interest of those whose best interest we serve. Our advice is that the values have reached a potential tipping point in which prices may continue to rise for the next year or two. Prices can also drop overnight. The last crash was spearheaded when investors saw the first glimpse of falling prices. There was a rush to the door to be first to unload their properties. Many had horrible loans and little equity. This is not the case this time around.
We are already beginning to see a rise in distressed sales. Foreclosures and Short Sales have begun to appear in our MLS on an increasing rate. We believe that this is not a good time to purchase an investment property unless there is a need to make an investment at this time or you are doing a 1031 Exchange. It would be best to purchase a home at these inflated prices at the same time you are selling your existing home and taking advantage of increase prices and potential capital tax savings. Give us a call for further discussion and information about this.
Now for the good part. This is an absolute great time to own your own home. We highly suggest reevaluating your current situation regarding your primary residence and any investment property. You should list your home for sale now if you want to move up or downsize. The biggest reason to sell is if your house is in a less desirable location. People will overlook flaws, lack of upgrades or even traffic noise due to lack of inventory. You should also investigate with your CPA taking advantage of either a maximum of $250,00 for a single person or $500,000 for your primary residence if you have lived in the home for two of the past five years. Please give us a call with any questions or concerns.
We look forward to hearing from you, working with you and speaking with you soon.
Presented by your Friends & Realtor,
Tony & Dani Lewis Summit Real Estate Group
Offices in Valencia & Aliso Viejo, California
Call or Text us at 661-510-7975
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