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Real Estate Trends, Updated Monthly
This section will
give you a monthly update on the direction of our real estate market,
which is of course important to both buyers and sellers. Please bookmark
this site and click here for the most up to date real estate trend information
on a monthly basis.
| The
real estate market is still strong at this time. |
In fact, prices have
rebounded, depending on the area, from 90% to 110% to the all time peek
prices in American history of 1990. Following 1990, real estate prices dropped
from 30% to 35%, hitting the bottom and then rebounding slowly, but surely
since in 1994.
| Interest rates
are still comfortably affordable in the 7.9% to 8.5% range right now.
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Loan programs are plentiful,
from 5% down programs and even 0% down programs for professionals in the
medical field. Easy qualifier programs are also available with low income
for low loan to value purchases. The average down payment on the Westside
is still 20% but there are many home purchases being made with 5% down and
10% down as well.
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Demand
is highest for fixed up homes that are ready to move into and for
fixer-uppers or teardowns.
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There is strong demand
at both ends of the spectrum. Due to the fact there is virtually no unemployment
and salaries are at an all time high, the market continues to thrive with
many buyers, even with prices back up to the peak.
| The market
is dominated with purchasers in the age group between 28 and 40 years
old, |
although there are purchases
being made in every age category. Never before in American history have
there been as many purchases made by single individuals, particularly females.
The Westside has been fortunate enough to reap the financial rewards of
several thriving industries. Certainly the entertainment industry: television,
film and video have had a dominant influence on the Westside real estate
market providing numerous buyers. The telecommunications industry and technology
industry have also been dominate forces to our expansive Westside market.
The demand for the Westside is particularly high with its short commute,
convenience and proximity to downtown Los Angeles, Century City and Los
Angeles International Airport. On the list of priorities that continue to
make the Westside a desirable place for many who can afford it, are location,
climate and proximity to the ocean.
| Single, first
time buyers are coming into the market, in many cases, purchasing
homes in the $400,000 price range and even higher. |
Couples purchasing together
in some cases are coming directly from apartments to the $700,000 - $800,000
price range. In fact there are even couples making their first purchase
exceeding $1,000,000. Home prices on the Westside start very close to $300,000
with the occasional exception of less.
| Average time
on the market is currently running less then 60 days with many homes
still selling in multiple offers at above the asking price. |
Average sale price to
list price is approximately 95%: that is homes are selling very close to
the asking price with some even at list price and above.
| The lifestyle
buzzwords at current are "privacy", "safety", "quiet", "bright", "airy"
and "seclusion". |
Turn offs are: lack of
privacy, dark, claustrophobic, noisy, exposure to parking lots, obtrusive
buildings, traffic and abnormal floor plans. These are the concerns most
articulated by buyers, specifying areas of important. Buyers' desire to
purchase a home with a nice master bedroom suite is very high on the list
of priorities. Kitchens, closet space and nice bathrooms are still very
important. The home office has become an issue that people are asking about
and backyard is still an important factor for outdoor privacy and entertaining.
As a remaining item, buyers are searching for a place for their big screen
televisions, their home computer and a comfortable sunny place to enjoy
their Sunday coffee and morning newspaper. When we can cater to these desires,
buyers continue to be motivated, and are very financially able to purchase.
Availability continues to be the major issue.
| Due to the
attractive changes in the tax laws, sellers are motivated to cash
out, and in other cases to trade their equity |
without surrendering
the better portion of it to the government. Now single people can sell with
a $250,000 profit tax-free and couple can realize a $500,000 profit tax-free
provided that the sale is made not more frequently than every two years.
The process is no longer limited to once in a lifetime.
| The trade
up market is alive and well. |
Job salaries, large equities
and a promising economy are the signs of approval creating motivation to
"step up". Starting at the entry level, first time home buyers are creating
opportunities for sellers to trade-up, in some cases, after only 24 months.
The market presents
wonderful opportunities for both buyers and sellers, thus continuing to
provide a win/win situation for all. This market trends update has been
brought to you by Ron Wynn of Coldwell Banker real estate. For your comments
and information please contact Ron at ron@ronwynn.com.
| Market
Conditions |
Good |
Fair
|
Poor |
| Ability
to Buy and Sell Concurrently |
x
|
|
|
| Affordable
Interest Rates |
x
|
|
|
| Availability
of Foreclosures & Distressed Properties |
|
|
x
|
| Availability
of Properties |
|
x
|
|
| Available
Loan Programs |
x
|
|
|
| Buyers
Looking To Buy |
x
|
|
|
| Demand
for Housing |
x
|
|
|
| Economic
Outlook |
x
|
|
|
| Financing
|
x
|
|
|
| Employment
Rate |
x
|
|
|
| Market
Activity |
x
|
|
|
| Market
Conditions |
x
|
|
|
| Opportunities
to Buy Below Market |
|
|
x
|
| Potential
for Appreciation |
x
|
|
|
| Pricing
of Homes |
x
|
|
|
| Trade
Up Opportunities |
x
|
|
|
| Turn
Over Marketing Time |
x
|
|
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(
~~ This article was written by Ron Wynn - 11/2000 ~~ )
Copyright© Ron Wynn 2000
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