Depending on what part of the country you live, you’ve undoubtedly noticed that the market is shifting to either a balanced or a buyer’s market. Media headlines and information only add to the confusion. Hence, we are all left with many variables and a great deal of mixed messages. None of this affects the savvy buyers who see this as an advantageous negotiation tool since there is less competition and sellers of course also understand that there are fewer buyers out there.
The flood of information is amazing, all you have to do is look in your email inbox, and it is filled with mixed messages and mixed signals. Every day I am flooded with emails from gurus who want to teach me how to get more buyers or sellers. I’m “guaranteed” to get my money back thanks to the monthly and annual generation of clients. (Let’s be clear they do not guarantee to generate “leads” for me.) I sympathize with new agents who must find it overwhelming. It is unproductive and can be very expensive to discover that many of these gurus are out there to simply take advantage of the unsuspecting and unseasoned.
First-time buyers in Los Angeles are getting the same mixed messages and misinformation which may make them very hesitant to enter the homebuyers market. It’s too bad because instead they should see this as a buying opportunity since the frenzied Seller’s Market is finally turning. Even if they lock-in the current 6+/- interest rates, in just a couple of short years they will have built equity on their home and they won’t be dealing with ever rising rent increases because, ironically, this shift will make Los Angeles rental prices even higher and more competitive.
The reality here in Los Angeles is this: Lack of affordability for first-time home buyers will finally start to improve. Since the astronomical rise in home prices over the past two years (or more) will get softer, this will help their home buying prospects. While the gurus say that the increase in mortgage rates basically will eliminate the moderate income families from buying a home, this is not the case now. It is possible that in the next few years this might become reality, particularly if the rates continue their upward trend. Taking all of this into consideration, it is more important than ever to buy now and not wait.
I fondly remember my parents buying their Connecticut home in the 1970’s even though interest rates were climbing. They never regretted their purchase and my dad was thrilled to paint the walls any color he pleased and hammering in nails for pictures without worrying about the landlord scolding him. He and my mother relished the peace and tranquility of having their own backyard. And they never needed to worry about rent increases again.
Don’t wait to take part in the American Dream!
Wishing you a safe and healthy life and I look forward to your comments. If you are looking for a knowledgeable, focused and goal-oriented Realtor in the Beverly Hills area who will help you achieve your Real Estate goals, please reach out to me directly! If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 ( m) firstname.lastname@example.org or visit one of my websites at https://www.endrebarath.com I contribute a portion of my commission to local animal rescue organizations. Endre Barath, Jr. Realtor at Berkshire Hathaway HomeServices California Properties DRE#01238708