By Dave Friedman, Realtor
Most of us are aware that residential real estate market cycle timing is an important factor when considering if buying property now in Porter Ranch a good or bad idea. Understanding real estate
trends and interest rates are key in making good decisions today.
Real Estate home values in larger more volatile cities such as Los Angeles tend to move in larger cycles of boom and bust. We are presently as you may sense at the bottom portion of the real estate cycle. The only foolish thing to do is try and time the exact bottom of the market. That is how you lose quality pieces of real estate. When the market picks up you will have many bidders for the quality home properties in towns such as
Porter Ranch. The market price changes are different depending on the price range and location. Pacoima has many 3 bedroom + 2 bath properties available as compared to nicer areas of Northridge such as Porter Ranch that have much less inventory with multiple offers on some homes. The houses under $600,000 tend to sell faster if in good condition and priced competitively in nicer San Fernando Valley areas.
There has been much discussion recently about banks holding back inventory. The reality from key people working with the large banks is the fact of a moderate flow of
foreclosure homes being released over the next couple of years versus a large flood. It is more cost effective for banks to short sale properties in order to avoid the extra cost of foreclosure, including Porter Ranch. There is also the delay in foreclosures from the illegal bank robo-signers falsifying home foreclosure documents. Many foreclosure Realtors are looking for non bank owned homes to list since the foreclosure process has slowed. The lack of understanding the real estate market has caused many buyers to wait. As home sales start to increase more buyers will jump into the market causing the stand out residential properties to rise in price.
Something else to consider if you are not purchasing for cash are loan rates. They tend to rise with any perceived improvement in the economy. Since the unemployment rates are slowly heading down, there is the perception of an improving economy. The results are higher stock market prices and higher interest rates. Inflation has been increasing especially with energy, commodity and food prices, which also pushes up rates. The mortgage interest rates have increased about ½% from the lowest level last year.
Your payments one year from now could be higher even if the property
purchased drops slightly in value. Taking advantage of extremely low real estate values relative to average income and low interest rates can make you a genius. The difference in higher interest rates can mean the dream Porter Ranch home is not affordable.
Feel free to call me with any Real Estate Questions at 818-Myhouse (694-6873). With over 20 years experience in Real Estate I can assist you with your house sale, purchase, investing or resolving a distressed loan. 818MyHouse.com with Keller Williams Realty – Experience Turns Real Estate Dreams Into Reality
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