What is the West Hollywood Real Estate Condominium Market like today?
What is the West Hollywood Real Estate CondominiumMarket like today?
One of my out of country clients who owns a Condominium was inquiring what the Real Estate Market was like today in West Hollywood. My answer was along this line:
Before I focus on what I think would be a good starting point to market your condominium, let me mention that the Los Angeles Real Estate Market is on fire. Very similar to the 2004 when the market was at the top. There are a few differences, buyers now have to be totally preapproved, and the lenders do not give money away just with a signature. They check funds, work history, income and they do real appraisals. In addition a few days before closing they double check if the buyer is still working. Now with that said, the consumer confidence came back because prices have increased 15-60% depending which pocket of Los Angeles we are looking over last year’s prices. This is all thanks to the all cash investors who were buying up everything last year for flipping and renting.
Interest rates are at an all-time low and this is allowing buyers to step into the market because they are afraid that they will be priced out of the market with price increases and interest rate increases. This is further fueled by having little inventory and the buyers are fighting to get the few good properties.
My observation is that this is not sustainable, once interest rates climb due to the close monitoring of incomes by lenders we will lose a large buyer segment. Then in order to attract the buyers the prices will have to dip since the lenders will not drop the interest rates, since the government is artificially keep interests low to get the buyers into the game. The government has already mentioned that they will be raising the rates and they will be getting out of the mortgage backed securities. How long will this take I have no idea, your guess is as good as mine.
Now with that said I would recommend you sell sooner than later, as you know the Real Estate is a herd mentality when they buy they all buy. When they do not than only the investors and bargain hunters buy. On a side note the employment situation is also a wildcard if it can sustain the housing improvements.
So with that said this is what the West Hollywood Condominium Market is like, so I was wondering how your market is doing.
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, Playa Vista, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 or email me at firstname.lastname@example.org 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.