Current conditions are solid for buyers and sellers, leading to mutually beneficial deals.
It seems that the real estate market here in southern California has finally entered a phase of healthy, reliable growth. After the boom and bust cycles of recent years, this return to normalcy should come as a welcome relief to those who are looking to buy or sell a home. Here are some of the key factors economists are pointing to as signs of a balanced market.
Slower Price Growth: In the past year, home prices in southern California grew just 7.8 percent, which is not even a quarter of the amount of price growth experienced the preceding year. This slowdown does still leave us well below the pre-crash high point of 2007, according to DataQuick, the median price of a Southland home is now $415,000, which is 18 percent lower than mid-2007. While underwater borrowers will be rooting for more price growth, for now they can at least be grateful that even if they are not likely to be able to sell their home just yet, they are not likely to have to foreclose either. New buyers, however, should be happy about this stall in the market as they may be able to get a good deal on a new home.
More “Regular” Sales: According to UCLA’s Ziman Center for Real Estate, a greater portion of residential real estate transactions are being done by “regular” buyers who actually intend to live in the homes they buy, rather than by investors. In fact, according to DataQuick, investment buys are at their lowest level in four years. This is a big change from earlier in the housing market recovery, when all-cash buyers and investors eager to get bargains helped drive prices up, and their tendency to quickly flip or resell properties helped contribute to instability in the market.
More Mortgage Lending: One final market trend that has been easing back towards normalcy is mortgage lending. According to DataQuick, overall mortgage lending has reached its highest level since 2007. With mortgage rates at historic lows, this bodes well for prospective buyers.
Take Advantage of This Balanced Market Now
The current market conditions offer benefits for buyers and sellers. You no longer need to feel pressure to buy or sell immediately to beat a market swing, but good deals are out there for those who know how to look. Prices are remaining steady and reasonable for buyers, and sellers who price their properties competitively can expect to receive multiple offers from qualified buyers. To get in on the action as a buyer or a seller, contact experienced local realtor Ty Wallace now!