Sunday, September 18, 2016

Home Sales Slowing & Buyers Showing Reluctance

September 18, 2016

We don't need services like Zillow and other inaccurate real estate "bellwethers" to mislead consumers into thinking home prices, especially throughout Los Angeles, will continue to rise. It's just not true. Home sales were steady, with prices rising and competition among buyers fierce over this past year, but things have slowed. Buyers are not accepting the current pricing of many homes, which has largely been based on lack of inventory.

All you need to do is drive around the city and see all of the open house signs on street corners. Less than six months ago, you were lucky if you saw a handful of signs. Take a random neighborhood like West Hollywood in the 90069 zip code. There are currently 44 2-bedroom condos for sale in that one area. And that's just condos!

Inventory is becoming plentiful. I'm no economist, but I am on the front lines of real estate. I see the increased number of listings and the competing open house signs crammed together on street corners, all in real time. Increased inventory means more choices and more competition, which spells one thing: Price Flattening and Price Reductions.

This type of news usually reaches consumers at least thirty days after things are underway, but we see it as it unfolds. The good things is that this is good news for buyers and for sellers who don't get hung up on falsely created, unrealistic sale prices.

Will the housing market tank? No-no-no. The affordability belt, however, will loosen, and prices might drop just enough to give so many that deserve a shot at home ownership a window of opportunity to finally realize their American dream.

Don't blow your opportunity. Oftentimes when prices drop, they will pop back up a month or so later. Be prepared. Get pre-approved and find a Realtor like me to keep you on your toes. Opportunity is knocking. Open the door.