Is the sky falling in the Los Angeles Real Estate Market?
.....Once upon a time there was a dear little chicken named Chicken Little.
One morning as she was scratching in her garden, a pebble fell off the roof and hit her on the head. "Oh, dear me!" she cried, "the sky is falling. I must go and tell the King," and away she ran down the road.
I had an interesting conversation yesterday with a potential home buyer. This buyer thinks he is unique because his credit is good and he has a larger down payment. Guess what? Many buyers today have good to great credit and larger down payments... These aren't the home buyers that purchased homes several years ago with bad credit and 0 down; these are the more cautious home buyers and the majority have high FICO's and generous down payments. AND they are ready, willing and able to buy.
BUT they want something that makes sense. They want a good deal, or a home in a great location, or move in condition, they really want to be excited about the home. AND most hope to purchase a home by the end of the year.
Smart home sellers are pricing their homes competitively and these home sellers are selling quickly and some even selling at or over asking price. They are establishing asking prices that excite these buyers.
Yes, Los Angeles home prices have dropped; now seems to be a good time to buy. Although in some instances there is still stiff competition (from other well qualified home buyers), there are more homes to choose from. If you want to buy and it makes sense, go for it - but home buyers be prepared, be prequalified (or even better preapproved and be ready to go IF you find the right home).
One morning as she was scratching in her garden, a pebble fell off the roof and hit her on the head. "Oh, dear me!" she cried, "the sky is falling. I must go and tell the King," and away she ran down the road.
I had an interesting conversation yesterday with a potential home buyer. This buyer thinks he is unique because his credit is good and he has a larger down payment. Guess what? Many buyers today have good to great credit and larger down payments... These aren't the home buyers that purchased homes several years ago with bad credit and 0 down; these are the more cautious home buyers and the majority have high FICO's and generous down payments. AND they are ready, willing and able to buy.
BUT they want something that makes sense. They want a good deal, or a home in a great location, or move in condition, they really want to be excited about the home. AND most hope to purchase a home by the end of the year.
Smart home sellers are pricing their homes competitively and these home sellers are selling quickly and some even selling at or over asking price. They are establishing asking prices that excite these buyers.
Yes, Los Angeles home prices have dropped; now seems to be a good time to buy. Although in some instances there is still stiff competition (from other well qualified home buyers), there are more homes to choose from. If you want to buy and it makes sense, go for it - but home buyers be prepared, be prequalified (or even better preapproved and be ready to go IF you find the right home).
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