Do the headlines affect the Real Estate Market? Observations by a Beverly Hills Realtor
While the gurus offer their investment suggestions of gold and diamonds to name just a few, not many are willing to step up and say park your money in real estate. Why not, you may ask? Well, they love volatility since it justifies their existence, and they can preach to the masses. On the other hand, if you really want a tried and true way long-term investment to protect your money, I have no problem saying park your money in real estate.
As a first-time buyer, you will be putting money into your own pocket rather than the landlord’s pocket; five to ten years from now, you will be glad you did. If you are a multiple property owner and landlord, you already know that those who are afraid to buy or cannot afford to buy will be your tenants for what will likely be a long time.
Yes, demand has cooled due to Inflation, higher Interest rates and the alarming headlines. Part of the reason is also due to what I call a herd mentality when it comes to buying and selling real estate. For example, for the past two years, buyers would submit 20-25 offers on a property and some did it sight unseen. They overpaid on homes anywhere from $10,000 -$500,000 depending on where the home was located. This was done against the advice of some of the seasoned Realtors.
In a normal real estate market, let’s take 2018 to be exact, there seemed to be what I call a ‘tug of war’ between buyers and sellers. When a property would come on the market, buyers would want to get it for the best price and sellers would want to sell it for the best price. Hence there seemed to be a discrepancy depending on point of view; in this instance, the value of a knowledgeable Realtor was even more important.
As we head back to that same direction, buyers and sellers are realizing that the Z’s and R’s of this world are no longer enough. While it’s a plus that they can expose properties to a large audience that did not exist before their advent on the Internet, they cannot provide the eyes and ears that a Realtor provides from being “on the ground” or “in the trenches”. The view looks different from ”higher up”.
The headlines do affect many buyers and sellers, especially those in the category we consider being a “buy up seller”. This is a client that wants to buy something bigger or in a nicer location, but opt to stay where they are. Hence, the real estate market we are currently in is ideally suited for the savvy buyers and sellers as they understand the favorable tax implications, the long term gain, and of course the value of home ownership.
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) email@example.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