The Real Estate Market Today

The LA Times is fond of printing articles about how bad the real estate market is and that the end is near. The article that I hope more readers got to see was in the LA Press Telegram. The title of the Article was called “Dispelling the myth of the housing bubble” by Carlos Arvizu. While Carlos is with a competing company he brings up some very pertinent points that buyers should pay attention to.

The following should be noted:

California, the Los Angeles area in particular is expected to have 570,000 more people here next year than this year.

• Let me be very clear, people have to live somewhere. It is true that some will never buy but many will.
• There are first time home buyer programs that literally give buyers down payments, pay for closing costs, & give below market interest rates. Those who want to buy & are dedicated will be able to do so.

Unemployment is low in fact it is 4.8%

The last time real estate in southern California was hit hard in the early 1990’s the defense industry nearly disappeared from the LA area.

The overall economy is moving in a positive direction.

There is a market correction

When prices of any asset, stocks or homes, rise at that is many times the normal speed at which the asset should rise there is bound to be a correction of the price.

This does not mean that sellers are going to lose big & that buyers can make an offer they want to and the sellers will have to take it. What it does mean is that sellers who overpaid for their assets or used non conventional means of financing & have to sell today may not get what they are asking for.

Sellers will always get exactly what the asset is worth as a home or any asset is only worth what someone is willing to pay for it.

I will continue more on this article when the remainder comes out next week. For now, you You be the judge of the real estate market!