August 25th, 2020
I was reading an article in Fortune Magazine today and once again I was reminded that most nationally syndicated real estate authors don’t get it when it comes to understanding the question “what real estate trend should you understand”
Perhaps that was an unfair statement because after all, Fortune Magazine is just like any other magazine … they have to sell ad space and if authors write about what I’m going to say next, then who’s going to buy the magazine. Look, we all know the oldest real estate adage on the books, right? Do I need to say it here.
Ok, I will. Say at loud with me, ready… LOCATION LOCATION LOCATION! But WHY is that the oldest real estate saying?
1) It’s true
2) It’s true because of the second oldest real estate saying which really should be the more important one since it “fuels” the oldest saying and that is REAL ESTATE IS ALL LOCAL!
Alright, let’s review the article:
- Home prices, nationally, are still expected to rise – single digit percentage, but rise
- Downtown areas will likely rise faster than outlying suburb areas
- Supply (remember supply and demand imbalances as the driver to price) issues are worse for lower priced homes than higher priced homes
- Sometimes buying a fixer and being willing to upgrade yourself, could get you a better deal (case by case though, right? what’s your time worth, and are you getting a good deal from a contractor you hire)
- Mortgage rates are most assuredly rising so since playing the commodity game of picking a bottom when locking in your rate is risky, it’s probably a better idea to lock in your rate as quickly as possible within the timeline of your escrow
Those are some broad brush stroke concepts to think about in 2017, but let’s get back to the title of the article
What real estate trend should you understand in 2017?
The clue is in understanding and accepting that as much as buying a home or selling a home is an emotional decision, there is one and only one metric that determines price SUPPLY AND DEMAND So let’s say you’re an owner of one of the Palos Verdes homes and you’re thinking about selling. Don’t you think it would be important to understand the supply and demand factors surrounding your home? How many homes like yours are for sale? How many sold in the last couple of months? At that rate of activity, what’s likely to happen to your home? And does that answer help you price your home in the lower or upper part of the range recommended by the real estate agents your interviewing? Same question for buyers of South Bay real estate. How will knowing the answers to those questions help you strategically structure your offer so that you’re not overpaying, but also so that you don’t lose the house you want?
So exactly how do you determine what the supply/demand trends are for your Palos Verdes home or if you’re a buyer, for any of the Palos Verdes homes on which you want to offer?
Get the answer to what real estate trend should you understand by contacting me for a no obligation objective report for your home Use the blue contact button on the bottom right of this site or if you’re on a mobile device, click here
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