| The last few years have been tough on buyers. | | | | shape.Interest rates are still at historic lows. Even |
| While interest rates remained low prices shot up | | | | if rates rise to 8% that is still much lower then at |
| dramatically in California and especially in our local | | | | any time in the last thirty years. As interest rates |
| South Bay Beach Cities. Inventory was limited and | | | | rise prices will stabilize and may fall a bit as it will |
| 15 -20 offers on a desirable property was the rule | | | | be harder for many buyers to qualify at the |
| not the exception. If you liked a house so did | | | | higher rates. The market will adapt to changes by |
| twenty other buyers in your price range! Buyers | | | | leveling prices.What should a savvy buyer do? |
| learned to be quick and literally gave the seller | | | | Smart buyers will buy a home that best fits their |
| anything demanded to get the winning bid. Many | | | | needs when they need a home. They will balance |
| buyers went so far as to give up inspections and | | | | price and mortgage rates that fit their budget. |
| any contingency in order to secure a home.Now | | | | Savvy buyers know that real estate is a long |
| that the market has slowed a bit many buyers | | | | term investment and plan to hold their property |
| see this as an opportunity to reverse the process | | | | for at least 5-7 years. There are too many |
| and make sellers sweat it out. Newspapers have | | | | people who want to live in Southern California, |
| front page articles on foreclosures, slowing sales, | | | | especially the beach Cities of Los Angeles, and we |
| bursting bubbles and gleefully point out that the | | | | haven't built enough homes to satisfy the needs |
| boys at UCLA look to a huge crash in the housing | | | | of our population. The South Bay is built out and |
| market soon. But they have been predicting a | | | | each time an older home is torn down and a new |
| crash for the last five years and so far it just | | | | one built two things happen. The supply of |
| hasn't happened. | | | | inexpensive rental housing is diminished and prices |
| Buyers are trying to figure out how big a | | | | on the new construction increase. Housing is a |
| discount they are going to get on the list price | | | | basic need. People need shelter. People will always |
| instead of how much over they will pay. So it is | | | | get married, have children, get divorced, get |
| easy to understand why many buyers are | | | | raises or lose their jobs. People will get transferred |
| shocked that their low offers are not being | | | | or decide to move to a new area. Young people |
| snapped up by sellers. Worse yet while sales are | | | | will want new larger homes and older adults may |
| slowing prices are rising. Welcome to a normal | | | | want smaller homes with lots of amenities. |
| market!In a normal market, prices don't drop 20% | | | | Housing markets will change and the smart |
| in a week. In a normal market, prices will continue | | | | buyers will buy the best home they can afford. In |
| to rise just at a significantly slower pace. In a | | | | Southern California that means they will almost |
| normal market a buyer will have a choice among | | | | always make money on their purchase. In 1952 |
| a number of properties instead of one. In a | | | | when my family came to CA homes were |
| normal market buyers get a chance to breathe | | | | $5,000-$10,000. The 1,500 square foot home my |
| before making a purchase. They can take a day | | | | Dad built in 1953 for $5,500 is worth about |
| or so and compare the features of property A | | | | $725,000 today with all the ups and down of the |
| as opposed to those of property B.The smart | | | | market. He would have been amazed!Kaye |
| buyer will still get pre-qualified by a lender and | | | | Thomas is a UCLA graduate and has been selling |
| have the funds necessary for the down payment | | | | real estate in Manhattan Beach Ca since 1979. |
| readily available. If the buyer needs to sell an | | | | Kaye works with buyers and sellers and |
| existing property they will get the property in | | | | specializes in residential and small residential income |
| market ready condition and list it with a | | | | property in the South Bay Beach Cities of Los |
| contingency that the sale is subject to the | | | | Angeles county. For more information on buying |
| purchase of a new home. In some instances a | | | | or selling visit Kaye at Kaye Thomas 4 Homes |
| buyer will be able to purchase a new property | | | | You can e-mail Kaye with questions at: Kaye |
| with the contingency of closing escrow on his | | | | Thomas |
| current home if it is priced right and in good | | | | Her BLOG is Beach City Real Estate Information. |