In last weeks LA Times article citing the falling sales prices, our zip codes did pretty well. 91202 actually rose by a little over a percent and 91201 only fell by about 3 percent. The message is that most home sellers are staying firm on their price because they are not in “distress”. But these numbers are behind the curve. Our market is dynamic and if you don’t pay attention to the signs you’ll be left in the proverbial dust.
So, what is really going on? The number of homes on the market is up, the number of homes selling each month is down and the number of days it takes to sell is more. Here are the statistics this week.
I will post a chart like this every week so that you can see the trends for yourself. I think most of the home owners needing to sell are getting tired of waiting. Many see the big picture of selling now and taking advantage of the market when they buy.
The great news for buyers is that they should not be afraid to make that offer – who knows if the seller can get to their next house on what you offer? The message to sellers is to be wise - what do you need to move on? It isn’t the comparables that matter. It is your ability to get to the next house.
Will interest rates help our market? Here’s an excerpt from John Vartanian’s newsletter:
The economic calendar thickens up considerably this week, giving a read on manufacturing, inflation and housing…but many of these reports will take a back seat to the Fed’s Policy Statement and Interest Rate Decision, to be released on Tuesday afternoon. Traders are forecasting a 100% chance of a Fed rate cut. About half the traders are expecting a cut of ¼%, and the others expecting a cut of ½%. Of perhaps greater importance is tone of their highly analyzed Policy Statement. Comforting words about inflation will help bonds and home loan rates.
Remember that a cut to the Fed Funds Rate would impact the Prime Rate, which affects Home Equity Lines of Credit, credit cards, business loans, car loans and the like – but does NOT have a direct correlation to home loan rates. For example, if the Fed should cut the Fed Funds Rate by .25%, you would likely see a change to your Home Equity Line of Credit by .25%, if it is tied to the Prime Rate as most are – but do not expect regular home loan rates to drop correspondingly, as the Fed’s take on inflation will guide the way.
Click here for the full newsletter.
The take away from this information is that interest rates are likely to remain the same next week. However, consumer confidence might be a little better. Ultimately, residential real estate is influenced by the lemming factor… if consumers as a whole are feeling great, sales are great. Let’s hope the lemmings have a great week.
Look at this home at 920 Crestview. Isn’t it lovely? Isn’t it innocent looking? Actually, it is lovely and the house is faultless. However, this is the escrow that wouldn’t close! Those of you who live nearby know what I am talking about.
Splish, splash, baby. Don’t you just want to jump in? This pool is at my Open house today, 2-5 pm. The address is 737 Palm, just off Highland. This block of homes is beautiful with pride of ownership neighbors and mature trees shading the street.
Just for fun, let’s start with my deal for today. 1846 Cleveland is reduced to $959,000. $959k! This is the best buy in the area. Glorious Spanish style, awesome and prestigious location, completely remodeled. Why, the house next door just sold for $1,050,000. 920 Crestview is ’round the corner and it needs a complete overhaul -it sold for $900,000. We will be open next Sunday 2-5pm. Come on by.
