Why the Housing Market is Slowing
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Yesterday's Los Angeles Times Real Estate section shows double digit increases in housing prices from July 2012 to July 2013 in almost all zip codes listed but there does seem to be agreement among Real Estate Agents that there is a slight slow down in the market. Please make note of the word slight.
Â We don't want any active buyers out there to think that they can low-ball every offer or that a highly desirable property won't get multiple offers, but there has been aÂ noticeable slowdown in activity.
We believe this is due to a few factors. One, we have interest rates slowly creeping up which has priced some people out of the market. Two, we have sellers grossly overpricing their properties which is allowing for longer days on market which leads to increased inventory. And three, we do have more inventory. Not an overabundance, but better than it was six months ago.
This slow down may be for the best. In the mini-bubble of 2013 we were again seeing houses selling over appraised value, which we know from very recent experience is not good for anyone in the long run. Â With all the being said, we think it is a great time to both buy and sell. For buyers
, prices are still affordable given the still historical low interest rates, and for sellers
, if priced and prepared correctly, your home will sell quickly at a price you never thought you would obtain just a short year ago.
Looking for a group of Realtors you can trust? Call the Michele K & Team today at 562-243-2171.
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