The Real Estate Market is shifting, time to take advantage of it...

By
Real Estate Agent with Berkshire Hathaway HomeServices 01238708

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. 

www.endrebarath.com

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. 

www.endrebarath.com

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.  

www.endrebarath.com

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. 

www.endrebarath.com

 

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!

www.endrebarath.com

 

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) homes@endrebarath.com 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

 

Comments (24)

Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Endre. Once upon a time I was a young man stating out. It was the early 70's and the mortgage rates were 7% with three points amortized over 25 years. Now rates are still less than they were back then and it is 50 plus years later. So I ask, what are buyers waiting for? Prices are still high, so I ask those who need to sell, what are you waiting for? Miracles are in your dreams. Pull the trigger. Enjoy your day.

Jun 30, 2022 05:45 AM
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Good morning Endre Barath, Jr., there are so many mixed messages, I wish people would stop paying so much attention to the news. Real estate is local, what is true for your area may be the opposite in another part of the country. As for my local market, the inventory continues to be low with high demand, some homes are still selling for above list price. 

Jun 30, 2022 07:02 AM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Endre Barath, Jr. Very interesting post  I just told this to a client who is hesitating on making a decision on listing

Jun 30, 2022 07:28 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

We are seeing more and more homes coming back on the market Endre, but the prices are still on the rise. This is due to super low inventory of course!

Jun 30, 2022 07:45 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Endre it has not started to shift here yet, but I will be ready when it does.

Jun 30, 2022 01:14 PM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Endre,

Great post. Each area is different.  Even in your area, there may be differences between the counties.

I have had 13 listings this year.  I have started to see the changes.  My comment is similar to Nina Hollander, Broker.  Though we are in a vacation/second home market in Sedona so 1031 exchanges are not uncommon and will probably rule the day with cash purchases.  I was getting 15 showings in 2 days just a couple of months ago.  Now I am getting 1 or 2 showings in that time frame. BUT, I have also had the homes go into contract at full price. I also just lowered a home 100K, yesterday.  So we will see how that works out. It went from $1,195,000 to $1,095,000.  The showings are slowing down. As noted by Nina, there is still no inventory to pick from.

Jun 30, 2022 01:28 PM
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Hi Endre I've been so many markets over the years it honestly doesn't phase me anymore. I see them coming a mile off as I did this one a few months ago.  There are certain areas I follow the market and trends every day and it POPPED out so fast and it's still a moving target. Listing counts are way up, price reduction (of course) DOM higher, buyers went on vacation (not all just some) and more importantly new listings are being priced way better and more realistic - as well as staged properly. I hear the newer agents freaking out - but hey - it is what is.  Do what works and keep doing it over and over.  Wow now that's almost long enough for a post!

Jun 30, 2022 02:44 PM
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Featured in BananaTude

 

Jun 30, 2022 05:11 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Nina Hollander, Broker thank you for your comment, check out my post I just wrote:) my mother's sketch of their home in the 1970's Endre

Jun 30, 2022 11:13 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Dorie Dillard Austin TX  sadly we do not have News anymore we have political messaging, reminds me of when I lived in Communist Hungary the news was what the politicians wanted you to hear and read...Endre

Jun 30, 2022 11:15 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Joe Jackson  thank you for your comment it has been ages since we connected, have a Happy 4th of July, Endre

Jun 30, 2022 11:16 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Brian England  great point, Endre

Jun 30, 2022 11:17 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Wayne Martin  my  father bought his house also in the 70's at the top of the market and sold at the bottom of the market but lived happily for 20+ years  in his own home and still sold for a lot more than what he paid for it, Endre

Jun 30, 2022 11:19 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Beth Atalay  you are so right, Real Estate is always local, now with that said need to watch the trends... CA is always first to drop and it takes six months for the rest of the country.... same story CA is first to bounce back and it takes another four to six months for the rest of the country. Endre

Jun 30, 2022 11:21 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Hannah Williams  feel free to use my post and the comments here, it is a great time to sell NOW, Endre

Jun 30, 2022 11:22 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400  indeed it is simple Economics 101 supply and demand:)Endre

Jun 30, 2022 11:23 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

George Souto  I am confident you will be ready to help buyers and sellers when it happens, Endre

Jun 30, 2022 11:24 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Sheri Sperry - MCNE®   I totally get it, if you got your finger on the pulse you will do well. I always joke with clients the world is falling apart but Real Estate is on Fire :)) yes I get it I have 26 listings (land) and land is the first to signal how the market is... Good news for all including me the market has started to pick up again here:)Endre

Jun 30, 2022 11:27 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Anna Banana Kruchten CRS, Phoenix Broker  thank you for your thoughtful comment and thank you for Featuring my Post, Endre

Jun 30, 2022 11:28 PM
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

As you know, California leads the way for the rest of the country (I've always heard it, so it must be true). My market is still strong with multiple offers, although homes are staying on the market slightly longer than they have within the last year or so. Our market is in transition but it is a gradual shift. Smart agents will keep informed about market trends and know what's happened in their market. Thanks for sharing what is happening in your area.

Jul 02, 2022 10:05 PM