Analysts Say the Market is Good, Bubble Not Likely
According to economists, reports are promising for the Southern California real estate market since the last part of 2012 and for the first half of 2013. While the state still ranks high on the list for its number of foreclosures, prices are on the rise, according to The Los Angeles Timesarticle“Housing Outlook is Bubble Free for Now, Economists Say.”
The depressed Southern California real estate market, it certainly seems, is rebounding. The Timesreport explains:
The lack of homes for sale, low interest rates, investor demand and an improving economy have caused sharp price increases recently. The median price paid for a home in Southern California rose 24.7% in May from last year.
Also although the market could still take a turn for the worse, analysts think it unlikely at this point, at least if the market continues to rebound the way it has. As one real estate analyst said as quoted inThe Times article:
On the current path, home prices, sales and construction should continue upward, said economist Jed Kolko of Trulia. Meanwhile, vacancies, delinquencies and foreclosures will be dropping. “Inventories may be down too as a necessary part of the housing recovery.
Is It a Good Time to Buy or Sell a Home?
So what does this signify for Southern California home buyers and sellers? Well supply and demand will dictate the next few months. But certainly, if inventory is down, it means more buyers are bidding for a single sale. Consequently it’s more important than ever to stage your house well, use a competent realtor and set the price appropriately. Additionally, if you are a buyer, it’s probably a good time to dip your toe in the market. If you’re in doubt about timing, follow the money trail. Drive around Los Angeles and Ventura Counties and see neighborhood areas that were at one time ensconced in a foreclosure quagmire and now see full blocks of houses being bought left and right by foreign and American investors. This is happening all over Southern California again because of a perceived return on investment—if indeed the economists are right. 2013 is likely to be a profitable time to acquire real estate for many Los Angeles and Ventura County home buyers.
As reported in a recent Yahoo Real Estate article,
Further encouraging a housing market recovery are a decrease in the distressed property inventory and an uptick in consumer demand. The interest in Southern California properties in particular — they represented 70 percent of sales — is driving the real estate market recovery for the entire state.
Choose Your Realtor Well
As a Ventura County and Los Angeles realtor, I have not experienced the devastating “valley” that most brokers have. For me it has been mostly peaks. However, I don’t deny the market was and is in a slump. But when inventory is limited, when pricing is so vital to a sale especially in a depressed market, my clients time and again chose to listen to experience and track record over the sensationalism that the media reported ad nauseam that no one was buying or it was a bad time to sell. I worked through all of this and I’ll continue to thrive through many more peaks and valleys. In the end, no matter what the state of the market, your realtor is the essential first decision in the process.
Choose a realtor with experience and know-how in the face of the most competitive and the most depressed markets. If you are ready to sell your home or are considering jumping into the buyers’ market particularly in Westlake Village and Agoura Hills, call me for an appointment at (818) 934-8902 today.