Boo! What a scary month!
Everyone seems to be afraid of this market, while what we are actually experiencing is a calm, steady market. The photos above are from a panel I sat on in Beverly Hills last week, with two top agents (Michael Libow and Danny Brown). We all agree that while the market is “in transition” there are many great opportunities out there for our clients. Yes, we wish our sellers were seeing multiple offers in one week, but price stabilization is a welcome reprieve for buyers who are now afforded more time and access to inventory. Here in the South Bay we are seeing continued low inventory (1-2 month absorption rate depending on exact location of property) and prices slipping only slightly. We are in touch with lenders that offer the best rates for each situation, and can help you lock into what are still traditionally low interest rates depending on your financial situation.
One thing I have learned after 20+ years in this business is DO NOT let FEAR run your decisions. Many buyers and sellers are balking or stalling—and it is very good to take time to make important decisions—but history will show that real estate is a solid investment, often times more solid than the stock market (which some would say is truly frightening to watch these days). A home is a tangible asset that can be used to live in and also rented to make an income off of when not occupying. Most often the lease rates increase inversely to sale prices so you can use this to your advantage depending on the market. Our clients that have purchased income properties in down markets to avoid stock market losses are all so glad that they did!
If you are interested in hearing more about this type of investment or are looking for an alternative or adjunct to your portfolio holdings, please call us. We would love to help.