29th Thursday May 2014

5 Tips for Riding Out a Real Estate Slowdown

Written by: Vanessa
Comments: 0
Category: Real Estate Bits
Highland Park: Listed for $549k, sold for $628k

Highland Park: Listed for $549k, sold for $628k

In my career I’ve been through two housing slowdowns–only to see it come back with average prices that were higher than they were before. My job is to make sure you get into a house that has the best chance of riding out a slowdown. So is this a bubble?

The short answer is, no. While there are areas (you know who you are) with closed sales prices that make little-to-no sense, the majority of homes on the Eastside are selling for amounts consistent with their neighborhoods and reflective of the near negative appreciation between 2008-2011.

The most critical difference between this seller’s market and past high markets is that interest rates are super, insanely favorable and just hit a 2014 low of 4.12% for a 30-year-fixed. This is a huge considering that the average rate in 2005-2008 hovered between 6.5-8% for crazy loans like adjustable rate or interest-only mortgages that caused the meltdown of 2009-2011.

5 Tips for Securing a Home With the Best Chance of Riding Out a Real Estate Slowdown

– Cliché, but true: neighborhood, neighborhood, neighborhood
– A seller’s market isn’t the time to drop trou on a highly speculative area
– Limited funds? Try to get at least 1000 sq. ft. on a 5k lot in the best area you can afford
– Buy appealing “insurance policies” like a big usable lot, great schools or views
– Buy the home you love. Chances are, others will too no matter what the market is like

Want expert guidance to find your little piece of L.A.? Let me know.

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