THE News again is very confusing, one day you will hear market condition is getting better, the next time you tune into your news you will hear that all of a sudden housing market is becoming bearish. That is what makes Wall Street tingle with cash, if the market is uncertain a Wall Street investor makes a killing with a volatile market.
As I have always thought, this housing recovery needed to main ingredient, one is the construction jobs to come back and two for the move up buyers to come out. New construction have been steady but slow in gaining jobs and the builders are still reluctant to go full blast with most of their project due to lack of consumer confidence. Move up buyers still has not come out in droves due to signs of the fickle job stability being robust and mortgage lending guidelines easing.
Homebuyers are more cautious now than ever, with rates going up above 1.25 percent over the all time lows and inventory rising. Homebuyers are taking a step back to observe how this will all play out. We are at the end of our summer which means typically Real Estate Market will slow down. So, is this just the norm for housing to slow down or is this a wake up call to all that the market consumers are taking a step back? I believe its both, in some areas prices are coming down in prices, you won’t see multi offers on the table for new listings and you will noticed more open houses on weekends.
This is where we needed to have the Federal Reserve to come in cut interest rates and send out a signal that they will continue the bond buying process. This will surely jump start what fumes that almost died out. Homebuyers are very sensitive to news that go around and they will react to mostly all bad news that is being circulated out there. The media still has a very strong hold over our decisions that are why you have to do your own research and study when and where to buy your new or next real estate.
One area in Los Angeles that I know is hot is downtown area, there are I heard about 75 new construction projects in and around the Staples Center and USC. Big RE firms have been trying to build up the downtown area since the early 2000’s it did get a lot of noise in the recent RE boom 2005 but quickly died down for all the same reasons, bad mortgages and down real estate market. A lot of foreclosures and bank take backs on these properties. But now, all the big restaurants and some shops and major hotels are back in the mix and hoping for a big pay day when the downtown area comes “Alive”. Now, I can’t say it has but there is definitely money going into the downtown area and sooner or later, we will always follow the money.
Another news is that rental market is starting to get saturated which is good for home renters, that means prices might start to come down a little for renters. Remember if you are qualified always remember to negotiate with landlords or management companies for better prices or terms.
As I have always said, cash is still king. With a very worthy credit and a great plan you can do anything and accomplish your dreams.
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Thanks for your inquiries and support, please call Ken for all your Real Estate and financing needs, call Ken at (562)508-7048 or write to [email protected].