We have a great macro economic industry base of entertainment and national defense. Its war time, and the boxoffices are booming, breaking records.
We have cheap, cheap money. Rates are still between 30 & 40 year lows depending. This makes homes extremely affordable. I myself am about to refi my home loan to 5.5% for 30 years. That is what I call free money when adjusted for inflation.
We have a great supply of new properties coming on the market. A large portion is foreclosures and short sales. These are sometimes great buying opportunities on top of the already corrected general values we are enjoying.
Yes the banks probably have about 9 months of hidden "shadow inventory" which many have talked about but the fact that thet don't dump it all out at the same time both keeps their prices stable, but in turn stabilizes the market. We've already seen the govt open their wallet unconditionally for the big banks, so I'm not worried about any of them failing.
What else do we know about the market? We know the bubble burst and it has corrected about 20-25%. That is a real pillar in our market's certainty. Remember the old saying...when there's blood in the streets, buy property. How can a home buyer lose when buying a 5-10 year home when prices are down 25% and interest rates are at 40 year lows?
I am helping my clients can make a lot of money during this period whether they are buying or selling. The key in either scenario is referenced above, buying right with cheap money.
That is the market here in LA and I look forward to fielding any questions you may have. I a$ probably going to post this email on my blog, so thanks for the opportunity of making it!!!
Best,
Jason Reitz
Rock Realty Group
Keller Williams Realty
323-656-4000 office
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