I’ll admit it – Tim got me going yesterday with this comment:
Socal has leveled off, and in some areas gone down. I’m a little surprised this website hasn’t commented more on the subject.
I try to present daily doses of market data, but I try to keep it neutral so you can come to your own conclusions. I also want to demonstrate my competency so when you need a realtor, you’ll contact me first.
But because Tim brought it up, I’ll comment more on the subject today.
Buyers are firm in their commitment to be patient, do their homework, and make a smart buy that will suit them for years to come.
How does that translate on the street? The quality-squeeze is getting tighter every day – only the best buys are selling. The homes with inferiorities or are priced 8% or more too high are sitting. Sellers have been very reluctant to lower their price, and some get lucky as prices continue to slowly rise.
These are the same traits of any ‘normal’ real estate market, so to me it seems to be a healthy balance.
You won’t hear me talking about how the market is up or down, hot or cold – that is to simplistic, and there is much more to it. I encourage everyone to keep an open mind, and take in all the data and observations possible.
What’s the best measure? Home sales – are homes still selling? Yes. Are there still outrageously high sales happening? Yes, I’ve seen a few head-shakers this week, which means there are still exuberant buyers in the marketplace, and they are the ones making the market.
For those looking for a downturn, there are two signs to watch for: #1, Are the number of lucky sales trickling down close to zero, and then #2, are there houses that you thought should have sold that aren’t selling. When you see both happening, then both buyers and sellers should be cautious.
Just because there are more homes not selling only means that more sellers who are overly optimistic, and you can easily fix that with price!
I’m not buying Tim’s comment, Socal has leveled off, and in some areas gone down. It is too vague, and hard to measure.
One house in particular to note: 1174 Hymettus in Leucadia. There hasn’t been another house on the street sell for more than $2,000,000, and it listed on 8/15/14 for $4,150,000. It went pending in 5 days! I saw it, and it was spectacular – the house is 6,508sf and built in 2008 on an acre of land at the top of the hill with quality ocean views:
It is an extreme example, but it shows why we all should keep an open mind – this post-frenzy run could keep going, and be harder to follow if sales slow down further.
Get good help!