Southern California, Los Angeles Real Estate Update!

Introduction:
I am David Toyama, Broker for Coldwell Banker David Steven Company, and this is my first blog entry ever! This blog is dedicated to bringing a clear perspective on the state of the real estate market in Southern California, with a particular emphasis in Los Angeles, and The San Gabriel Valley. The Goal of this blog is to be a resource forum for all readers, buyers, sellers and agents, so that they can make decisions based on relevant information that I receive in the field every day. I will be updating this site twice a week.

Qualifications:
I have been in the real estate business since 1984. I have seen cycles in this industry come and go and have a world of experience to share with those who will read my blog. Although I have many agents that work for me, I remain active to this day in the sale of homes, townhomes & condos, and commercial and investment properties. I am a licensed real estate broker/owner in The State of California. My 23 years in the business have been primarily in sales and managing sales agents. Currently my company has offices located in Los Angeles (Eagle Rock), Azusa and Baldwin Park. I and my agents will keep you well abreast of what is going on in real estate today. We work in the trenches each and every day. We know what is going on. Thank You for your readership. I look forward to your responses.

The State of The Market Today!
2007 has been a year of change in the market. Volume of property sales are down, however prices in Los Angeles County over the last three months have continued to climb as reported in The Los Angeles Times for the months of January through March 2007, as compared to the same periods last year. Very often buyers mistake a decrease in sales volume and equate it to a decrease in price. This has not happened. Sure there have been decreases in certain areas, or decreases in asking prices, but recorded sales statistics still show an overall increase in price. Prices are remaining relatively steady over all.
Loan products are starting to disappear, as loose lending practices, fueled by the previous booming market, and deregulation are now turning into foreclosures, particularly in the subprime lending market. This is having a ripple effect as we see many main stream lenders tightening their standards for the 100% loan programs. Some lenders are eliminating low or no down payment programs all together. I anticipate this trend to continue.
Real Estate Agents too have started to leave the market, as sales volume decrease and it gets harder to make a sale. The merger and closure of some real estate offices has begun, both independent and franchised companies have seen offices close. This fact has not been much publicized by the real estate industry.

Great News for Buyers!
It is a Buyer’s Market. That should not be news to anyone that has been in the market recently. Buyers are setting the tone for negotiations. Buyers are asking for and getting reductions from the asking prices. Sellers are paying for some or all of the buyers closing costs. Sellers are reaching out to proven sales agents as the market gets tougher. It is not uncommon for the seller to offer incentives to entice a homebuyer, or increased sales commissions to encourage agents to show their home.

The Silver Lining for Sellers.
If there is good news in the market for today’s seller , it is that prices are holding, especially in the entry level, and first move up housing markets. The demand for housing in these areas is still brisk. At a recent open house on April 1, 2007 in Azusa, Ca. Our agents had over 30 registered visitors. They have already received offers on this home priced for $495,000. In Los Angeles & San Gabriel Valley, entry level homes are the ones in the range of up to about $600,000, first time move ups that we see are from the $600,000's to just over a million, sometimes more. Of course the price ranges differ from community to community. This gives a general perspective in the areas we serve.

Other Trends in the Market.
There are two more trends that are occurring in the market that I think are of major significance. First the demand for housing has lead to an explosion in the development of urban living spaces. Downtowns in all sections of the southland, including downtown Los Angeles are experiencing a renaissance of the urban living experience. Thousand of higher density living spaces are being built in these urban areas. Townhomes, Condominiums, flats, live work spaces studios etc... And they are selling! That is the big news. The landscape of what is homeownership is changing dramatically, redefining where and how people want to live. I see this trend to continue to the point that it will be a commonality not a trend in the near future.
Secondly, buyers and sellers are redefining the real estate purchase and sales experience too. We find ourselves re-inventing as never before the way we are communicating to our consumers. In the case of buyers for example, we have found that over 80% of homebuyers are starting their search online. They want to remain in control and anonymous until they decide that they want to speak to a realtor or seller. Fortunately, we have found that once a decision has been made, homebuyers and sellers still prefer to have the services of a real estate professional to handle the details, and make sense of all of the information overload. That is what I am here for.