After 2 months of solid activity, 4209 Via Pinzon is in escrow. This is a great home and the buyers are looking forward to joining this great community.
There are 2 things we have learned over the last 60 days between agent feedback and comments during open houses and meeting with potential buyers that merits sharing, especially if you are considering buying or selling a home in the next 6 – 12 months.
- The market is still full of buyers, but they have grown more patient in the last several months. This is evident in the increased time homes are taking to sell – not just in Valmonte, but throughout the South Bay and Palos Verdes. With over 300 visitors through the house, it is clear that Valmonte is still generating a lot of interest, but buyers know what they want and are willing to wait for the right property at the right price. 4 months ago, there was half the inventory and a general fear that you may have to wait another 6 months to find a home if you don’t act quickly. That has certainly changed.
- After 43% appreciation over the last 4 years, buyers are beginning to ask the question, how much longer can prices go up? This is a rational and understandable question given homeowner’s memory of the market crash from 2008 through 2012. My last post covered this topic in greater detail, but it’s worth addressing again. A recent statement by CAR Chief Economist Leslie Appleton-Young addressed the market by saying “I think we’re getting close to the peak of the market, but we haven’t really had a stellar recovery either.” She went on to address the potential for declines by saying “It’s really going to be more of a slow squeeze than a big drop.” The market fundamentals are still in place for continued price appreciation, but history tells us that growth cycles typically last 4-5 years and we’re already 4 years in.
So what should you make of all this? I’m advising my clients on the sell side that the window of opportunity to take advantage of equity appreciation is starting to wind down, but as long as interest rates remain low, there will still be plenty of buyers around. On the buy side, I’m advising clients that if it’s the right house for your needs and it’s in your budget, it’s worth taking action. And if the house has been on the market more than 90 days, the next few months may be the best time to take advantage of seller frustration and negotiate the price.
If you need help putting a real estate plan together, send me an email and I’ll create a customized plan for your needs.
Until next time…see you in the neighborhood!