Wondering what is everyone's opinion on the current market? It seems that RE prices are the same and nothing has changed
Hi @Albert Gutierrez , I'm not seeing a whole lot different here, except fear is in most people's minds. Buyers are being pickier than before, but with less inventory. Interest rates are still low, but loans are harder to get. More deals are falling apart, but a qualified buyer is still able to buy with success and a home marketed well at a sensible price will still sell with success in many parts of the country.
@Albert Gutierrez - Luxury sales have been hit the hardest. In April we had a 60% drop in pending sales, vs 80% for the $3M+ price point. For the last several years Los Angeles has been struggling with low inventory, we started off this year with even lower inventory. Due to Covid, many sellers have taken their homes off the market, further restricting buyers options.
I've been in 2 bidding wars this month and am about to write an offer on a multiple offer scenario. Attractive and well priced homes are selling fast. Opportunities are increasing for investors that are willing to write offers and have cash.
I think unemployment will be an indicator of how the real estate market does in the next several years. If we have high unemployment that will dampen buyer demand. 40% of the job losses have been in the restaurant & service sector which has it can be difficult to make enough money to purchase a home in LA.
Until Supply and Demand tips for a long period of time, I would start expecting wide spread price declines.
In terms of my rentals, we’ve reduced prices slightly in order to secure qualified tenants in some cases, but so far traffic has been pretty good, and I’ve leases 4 places since March.
The only place I’m really hurting is with a condo I’m renting out in the Eastern Columbia building. The unit above me will undercut whatever price I list, and I’ve had almost no leads since February. No one wants to move to a big building in downtown right now.