Dear Friends and Colleagues, Please enjoy this months Real Estate Newsletter. Our goal with this monthly newsletter is to help keep you informed on what's going on in the Los Angeles real estate market through our custom analysis, statistics and featured articles. In this months issue, find out what's going on with interest rates and learn more about where the market is heading in 2017. Don't miss our featured article in our Money Matter segment on how to save money on your taxes. Please continue sending us topics of interest so we can cover them in future newsletters. Thank you for reading!
November 2016 Real Estate Newsletter
MARKET UPDATES
Home prices in Los Angeles, California have risen steadily — and significantly — over the last couple of years. But that might begin to change in the months ahead. Recent forecasts for the Los Angeles housing market suggest that prices could rise more slowly in 2017, compared to this year and last...
The market is in a very interesting place right now. We are seeing a small uptick in activity since the election but it’s too soon to really tell where the market will be going next year. The elections are over and even though most were extremely surprised of a Trump win, the market seems to be accepting it quite nicely. Even though the futures were down around 900 points the night he won, the stock market is now near an all time high showing lots of strength going into December. One big change that occurred is interest rates jumped up around 0.5%. This will definitely affect the market as less buyers will be able to qualify for a mortgage due to the higher cost of money.
The LA market is still very strong, especially the entry level market for each zip code. First time home buyers and move up buyers are still desperate to find the perfect property so make sure your home shows well every single time you have a showing. Take the extra time to make sure all lights are on, windows are open, music is playing, candles are lit. Buyers buy on emotion so you must make them FEEL that this is the perfect property, not just open the door and let them run through unaccompanied. Nothing could be worse for your property. Is your agent focusing on the critical details that makes the sales presentation that much more powerful? It really makes a huge difference! Learn more about our 3 phase business plan that maximizes the sale and presentation for your property.
ADVICE FOR BUYERS
The market appears to be strong right now and it’s approaching a more balance ratio between supply and demand. We don’t see prices going down drastically, if at all so waiting to purchase with hopes that the market will take a turn for the worst is probably not going to happen in the next 3-6 months. With interest rates much higher today, many buyers are no longer able to afford a loan. A few options to consider is an ARM (Adjustable Rate Mortgage). This is where your loan would be fixed for either 3, 5, 7 or 10 years and then becomes adjustable after that. You usually get a lower interest rate when your loan is fixed for a shorter duration. If you plan to only be in your home for 5 years (average is around 5-7 years), you don’t need to pay the higher interest rate for a 30 year fixed loan. ARM products are not for everyone so make sure you speak with a professional before choosing that option. Please contact us if you have any questions about these loan programs.
MONEY MATTERS
TAX CORNER
It's not too late to take steps to significantly reduce your 2016 business income tax bill and lay the groundwork for tax savings in future years. Here's a summary of some of the most effective year-end tax-saving moves for small businesses under the existing Internal Revenue Code. After President Obama hands over the baton to President-elect Trump and new members of Congress are sworn into office in January, the tax laws could change. But here's what we know now.
4 Bedrooms, 3 Bathrooms with 3,677 SqFt of Living Space on a FLAT 13,525 SqFt Lot
Newly Built in 2003 with Designer Finishes.
Guard Gated Community that features tennis, basketball and volleyball courts as well as an amazing pool, hot tub, playground, gym and community BBQ area.
Highly Rated Schools with easy access to the Freeway and Beaches.
Offered at - $1,198,000 - $1,248,000.
NOVEMBER ESCROWS
OFF MARKET EXCLUSIVES
This Months Featured Off Market Listing:
Mixed Use Opportunity on Whittier Blvd. Great Investment Opportunity on Whittier Blvd!
Excellent corner Location with great visibility.
Tremendous upside in rent along Whittier Blvd.
2- story mixed use opportunity
25 Units.
Conveniently located just minutes from the 710 and 5 Freeway. Building sq ft is approximately 17,500.
Cap rate of 7%+
Contact us to find out more about this pocket listing!
WE HAVE OTHERS - If you are interested in Off Market Properties and this months property does not fit your criteria, let us know what you're looking for and we can provide you with other Pocket listings we have available.
LA LIFESTYLE
Restaurant of the Month: Kettle Black, 3705 W. Sunset Blvd.
