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How did the term “Real Estate Market” evolve? This is a history lesson on the evolvement of a new term.

Posted on Sep 15, 2010 by in Active Rain | 0 comments

How did the term “Real Estate Market” evolve? This is a history lesson on the evolvement of a new term.

When my parents bought their home, there did not exist a term called ‘Real Estate Market’. This was not that long ago, in the mid 1970’s. People bought homes to live in them period.  The more Affluent people bought homes to live in them as well and in addition bought vacation homes to own instead of renting them.

Then fast forward to around March of 2000 after the Tech Stock Bubble burst, people were hesitant of putting their money in the Stock Market. Real Estate was such a good and safe place to be put their money. People started not buy homes to live in them, rather to make a profit.

  Around the end of 1999 many people had started making a shift from moving their money from the Stock Market to the Real Estate.  Hence a short term investment philosophy of Real Estate started evolving.

 Here in the greater Los Angeles area, everyone became a “Real Estate Developer” no experience was required. The novice developer was protected by the “market”.  West Hollywood was probably one of the most active for turning properties magically from old to new. How was this done?

The novice developer bought the  least expensive and oldest Condominium in a building, the one that needed new carpet, new paint, new kitchen appliances and new bathroom fixture and  spent anywhere from $20,000 to $40,000 to bring the Unit to the year 2000 and its new glory.

The paint was not even dry and the unit sold in multiple offers above the asking price. This was repeated over and over and some of the novice developers kept doing this at two to four month intervals. Everyone was making tons of money.  In the restaurants, bars and at parties, everyone was talking Real Estate. It was ‘the topic’, asking, talking or bragging about how much money they made on” their investment”.

One could make” great returns on their investments”, better then the Stock Market, hence the term was coined” Real Estate Market”.

 If you are a consumer  who is considering buying  or selling  a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at homes@endrebarath.com  or visit one of my websites at http://www.endrebarath.com  Your Pet Friendly Realtor. I contribute a portion of My commission to Local Animal Rescue Organizations.

 

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