Reflections on 2022 -Observations by a Beverly Hills Realtor: Endre..

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Real Estate Agent with Berkshire Hathaway HomeServices California Properties 01238708

Reflections on 2022 - Observations by a Beverly Hills Realtor: Endre Barath, Jr. 

www.endrebarath.com

Having been a Realtor for the past 27 years in the greater Los Angeles real estate market, I can quite frankly say that 2022 has been one of the most challenging years I have ever experienced. As a seasoned agent of course, I have seen variations of the pendulum swing over the decades, but nothing in my opinion compares to the roller coaster ride of 2022. 

For example, the year started out in what I call a sellers' market feeding frenzy.  Buyers were offering $100,000 or more over asking list prices and transactions changed from Just Listed to Just Sold in a matter of days. I advised buyers not to remove all their investigation, loan and appraisal contingencies; some listened, while others just wanted to buy the property. 

In the second quarter of the year, I noticed a shift in the market as the Commercial vs. Residential real estate market started to cool along with vacant land sales while the single-family market remained very active. We all remember when mortgage rates started to climb and made it to about 3.2 percent, and by the third quarter we were hovering around the high 6 to low 7 percent range. I advised sellers that it was the time to list your home if you were thinking of selling.  Next came the headlines of inflation and your hurting wallet when you filled up at the gas pumps.  

www.endrebarath.com

 For as long as I've been practicing real estate, I have been saying that Real Estate should primarily be considered a place to call ‘home’ where you enjoy your very own space both inside and outside if you are lucky enough to have a private back and/or front yard. It's a place where you can put nails in the wall for pictures and paint the walls purple if you so choose; a place where you don't have to stress over a rent increase although there's always good old property taxes! Finally, you can feel confident knowing that in the long-term the value of your home will increase no matter what the pundits say. For example, had you bought a home in the flats of Beverly Hills 25 years ago you could have had it for roughly $850,000 -$1.2million.  Today that same home would sell for around $8,000,000 -$15,000,000 which further confirms that Real Estate is a long-term investment no matter where in the country you live.   

www.endrebarath.com

 

Colleges are of the simple economic thought principle that “supply and demand” determines "values''.  For the past three years, the Real Estate Inventory supply has been tight in the greater Los Angeles area.  What has changed since the third quarter of 2022 is that demand has diminished; thus, we flipped from a Seller’s market with limited inventory to a Buyer’s market with limited inventory.  Political involvement with policies such as rent control and eviction moratoriums have complicated matters further affecting the multi-family and commercial markets. 

 Since there will be less sales, giving buyers stronger negotiation opportunities unlike in previous years, you will likely start seeing agents spending more money on marketing and the real estate business will become more competitive than ever.  With that said, potential buyers and sellers need to look at the track record of the real estate agent, and not be swayed by glitzy marketing.  Be sure you have a seasoned, solid, and straightforward realtor working for you. 

If we do not connect before January 1, I'm wishing all of you a happy and healthy New Year. Let’s talk - whenever you are available, I make myself available.

 

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 (30)

Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

I found your explanation excellent and observations right on the money. Have a wonderful New Year's Eve and Day and may 2023 bring you joy and prosperity.

Dec 29, 2022 07:59 AM
Mark Don McInnes, Sandpoint-Idaho
Sandpoint Realty LLC - Sandpoint, ID
North Idaho Real Estate - 208-255.6227

Hello Endre.  Your post, no doubt, is spot on for not only your area but many, or most, across the nation.  Yeppir...2023 should be quite interesting.  There are so many questions I do not have answers to and only the weeks/months will bring forth anything close to what direction we are heading.  No doubt political intervention will be a major factor for all.  

Endre, make your New Years safe and enjoy.  Mark

Dec 29, 2022 08:31 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hi Endre,
Stories like yours make me glad I am happily retired. Here's to hoping 2023 is a little easier on everyone.

Dec 29, 2022 08:35 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Hi Endre after 35 years in this business I am so used to the ups and downs and arounds.....whatever that means! I watch our market reports daily and by late April I saw a dramatic change - and knew. But of course all along I've been tracking the stock market moves, political bs and of course the good old fed. Most agents here figured it out by late June and started freaking out - if they were newer agents.  Us old farts didn't flinch or have an emotional reaction...  We're used to shifting and doing what needs to happen in any market.  Be consistent.  All will work out well.

Dec 29, 2022 09:47 AM
Andrea Bedard
Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD
Fluent in Real Estate & German, M.A. ABR ASP CIPS

This is a great insight into the Beverly Hills Real Estate market Endre. We'll be faced with an inventory shortage for some time, I believe, since so many owners are sitting pretty on a two-point-something interest rate if they have a mortgage at all. But I do hope that rates will settle in the 5% range next year to help with affordability for all the ready and willing buyers. No matter the market conditions, there will always be some! 

Dec 29, 2022 10:33 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Endre we are still in a strong Sellers Market here in CT and I don't see that changing until we have an increase in inventory.  Demand is still strong here, but you can't buy what you can't find.

Dec 29, 2022 11:14 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Laura Cerrano  not sure if I understand or agree what you said:) Endre

Dec 29, 2022 09:57 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Brian England  indeed informative for the local community now with that said usually six months later it is in the rest of the country:)Endre

Dec 29, 2022 09:58 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Nina Hollander, Broker  love it "nobody's market":))Endre

Dec 29, 2022 09:59 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Dorie Dillard Austin TX  indeed that was my point seasoned agents will be successful in helping their buyers and sellers, Endre

Dec 29, 2022 10:00 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kat Palmiotti  wishing you a very Happy New Year, Endre

Dec 29, 2022 10:01 PM
Kat Palmiotti

You too !!!

Dec 30, 2022 04:45 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Wayne Martin  thank you and Happy New Year to you and your family, Endre

Dec 29, 2022 10:02 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Nick Vandekar, 610-203-4543  wishing you a Happy and Prosperous 2023, Endre

Dec 29, 2022 10:05 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Mark Don McInnes, Sandpoint-Idaho  loved your comment one of the newer agents in my office asked me what I thought the new year will bring... told her I do not have a Chrystal Ball:) she was funny common you have 27+ year of experience what do you think?:))) I told her as long as you answer your phone, reply to emails and texts you will be successful:)Endre

Dec 29, 2022 10:08 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Carol Williams  I so agree with you but Diane will not let me retire:)))Endre

Dec 29, 2022 10:09 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Anna Banana Kruchten Phoenix Broker  we are on the same page, wishing you a very Happy New Year, Endre

Dec 29, 2022 10:10 PM
Cathy Criado
Criado Realty - San Antonio, TX
Making Real Estate Profitable

Endre Barath, Jr. I soooo appreciate that you stopped by to wish me a Merry Christmas. I apologize for not responding in kind. I had a tough few weeks there as you know then took a few down days. I am still in down time right now but didn't want my blogging friends to think I fell off the wagon again.  Here's wishing you a fabulous 2023!

Dec 30, 2022 08:43 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Endre Barath, Jr. - there was lots of good food for thought in your reflective observations. When the market shifts, there's nothing to get rattled about, just prepare to do the clients a favor and remain calm. Explain and go foward with them step by step. I remember 2008 - 2010 well. While many newer agents got nervous, some succeeded, while other left the business. I stayed in it and those were my best years! 2022 was a wild ride in Real Estate, and another great year for me. I have no complaints. Your overview was excellent. 

Dec 30, 2022 09:59 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Like Dorie Dillard Austin TX, I had an even better year this year and plan to do the same next year! It's a 'new' market for many but, in the end, I believe when our communities trust us, they put their largest investment in our hands and let us do what we do best, no matter the market we're in. 

We'll get through this - the strong shall survive and you're definitely one of the strong, Endre!

Dec 30, 2022 10:32 PM
Marcus Anderson
MortgageBrokerSantaMonica.com - Santa Monica, CA
Mortgage Broker & Agent | Westside Los Angeles, CA

Great post and great picture! Endre Barath, Jr. 

Dec 31, 2022 01:46 PM