There are still people out there looking for their “Home Sweet Home!” Many people – we are in a normal real estate market here in our area – the South Bay of Los Angeles which includes cities such as Redondo Beach, Palos Verdes Estates, Rancho Palos Verdes, Hermosa & Manhattan Beaches, Torrance, etc. It’s an area bordered by the Pacific Ocean – we call it the South Bay because the beaches curve around from Palos Verdes to Santa Monica and create a bay like shape. The views from Palos Verdes looking north view the Santa Monica Mountains and vice versa. The views from Santa Monica looking south see the hills of Palos Verdes…the views are really beautiful!
Back to our “normal” market – that the media would prefer not refer to. The media likes to glom onto the ill effects of the banking industry malfunctions and the foreclosure rate which is through the roof in some cities throughout the country. It’s depressing to read the paper, so I usually just give it a pass.
People still have many reasons to buy and sell homes. Growing families, job transfers, downsizing, opting for a different neighborhood/school system, etc. Typically these are normal working people (who still have jobs) and can still obtain a mortgage since they have not borrowed every cent against their previous home and/or maxed out all their credit cards. These people have been reasonable about their finances all along and will continue to be reasonable as time goes on. Buying a home is still an investment for many people. Most people I ask, “Do you think this home will be worth more or less in 5-10 years?” answer with “More.” And I would agree with that sentiment.
Yes…most markets – including our “normal” market have taken a hit in prices – which were highly inflated from our “over-active” market of the past 5 years. It’s been about a year now since we started seeing the decline here…not even a full year yet…it’s started about mid-year 2008 – from what I could tell. Things were still rocking and rolling this time last year here in the South Bay. Brakes went on around June 2008.
Bottom-line for buyers – right now is a great time to buy into a great South Bay neighborhood and save quite a bit over last year’s prices. And interest rates – which this time last year were sure to increase – have come down as well. The Economic Stimulus Package of 2008 ended, but the Feds have new Stimulus Packages in the works that should benefit us all as we move forward!
