Tag: when to buy

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Is Now a Good Time to Buy a House?

REAL ESTATE NEWS (Los Angeles, CA) — Looking at the real background of today’s crashing real estate market, how should we determine when might be the best time to purchase a loft, condo or house? As interest rates go up and the housing market falters, many Angelenos are today delaying, putting off a home search until they feel the market hits a low point.

Deciding when to buy a house is one of the biggest financial decisions that most people ever make. Not only is it an enormous financial decision, it’s also an extremely emotional choice. Anyone who has put in an offer, gone through a bidding war, then lost a home — or who got their dream home — would agree that the process can have extreme highs and lows.

The last several years have been increasingly confusing to potential home buyers. Virus hysteria hit us with tremendous fear, and created massive anxiety about the future of the economy. The initial panic spurred home buyers to put a pause on purchases. Eventually, lockdowns, remote work and remote learning inspired many to seek additional space. That, coupled with what was a low-interest-rate environment and low inventory, spurred bidding wars, sending home prices soaring.

Now that the Federal Reserve is hiking interest rates, with more increases anticipated in the coming months, there is upward pressure on mortgage rates. The average rate on 30-year mortgages has recently risen above 7%. This is more than double what rates were toward the end of last year. With higher borrowing costs, the Mortgage Bankers Association has reported that mortgage demand is 86% lower than it was last year. They anticipate slowing housing demand for 2023.

Now, there are fewer bidding wars, and we are seeing more price drops. Downtown Los Angeles home prices fell significantly last month as compared to the same month last year. With all of this financial havoc, many are asking if now is the right time to buy a home. The answer really depends on one’s needs and current financial position.

Get a free list of four questions to ask before making a home purchase decision. Fill out my online form.

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker CalDRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

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When to Buy and Sell Downtown Lofts – The Real Estate Market Barometer

Is It Time to Sell or to Keep Buying Downtown Real Estate?

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alta-loft-for-sale-200-n-san-fernando-rd-305-03Ever wish you had a crystal ball for Downtown L.A. loft and condo home values? While many home buyers and sellers must follow their own personal needs when it comes to timing, those who are most profit-minded will attempt to buy low and sell high in order to maximize return on investment. Downtown has demonstrated itself to be a market timing barometer of sorts that can tell us when to buy and sell by comparing Downtown to the rest of the country.

During the 2008/2009 economic downturn, Downtown Los Angeles experienced a timing cycle that was different from the rest of the USA. Downtown L.A. continued to boom for almost another full year after U.S. real estate values real-estate-valuesin general began to stagnate and decline in price.  In 2012, the national news was still reporting on the faltering and declining economy while Downtown Los Angeles was already beginning a huge, rapid boom. As the media was warning about a bleak future preceded by a coming wave of foreclosures (which never came) the boom in Downtown was already beginning.  But most did not hear about the Downtown boom until much later because even the local news was reporting the national news on real estate. Even our own local newspaper, the Downtown News largely ignored Downtown’s real estate turn-around until the mainstream news began to give some positive information, again almost a year later.

South Park Downtown Los Angeles

While past results do not necessarily predict future results, what else is there to go by? Based on what we have seen before, if the U.S. is about to go into a recession or some kind of funk, Downtown is predisposed to keep booming for about 10 months.  Then astute buyers and seller need to keep an eye on the actual real estate market in Downtown to see when to invest heavily in Downtown real estate. One thing is for sure, we cannot rely on the mainstream news to keep us informed on Downtown real estate trends.

If history repeats itself, which it usually does, Downtown property owners will have 10 months to consider selling at a high price before Downtown homes join the downward slide (which economists recently predicted to happen in 2018 or 2021 depending on whom you believe). By the same token, Downtown homeowners currently have an additional 10 months to load up on real estate while the U.S. continues to gain ground.

Keep your finger on the pulse of the market by seeing what has sold recently in Downtown with these free tools:

FIND OUT WHAT THE HOME DOWN THE STREET SOLD FOR

GET REGULAR DOWNTOWN MARKET SNAPSHOTS

FIND OUT HOW MUCH YOUR HOME IS REALLY WORTH

SOLD in Downtown Los Angeles

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P.S. Your Referrals Help The Kids!   $125 donation goes to help the extraordinary kids in need at Childrens Hospital Los Angeles on every home we sell this year.  Help us help Childrens.  Who do you know considering making a move that would benefit from the services we provide?  Call me at 213-880-9910 with their contact info, or have them contact me.  You can also visit http://www.ReferralsHelpKids.com.  Thank you in advance!

Copyright © 2015 This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not necessarily associated with the home owner’s association, seller or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com  Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.