In this months newsletter, we report that there was a very small drop in home prices recently, which shows that price appreciation is definitely slowing. Demand is still much greater than supply. Inventory is starting to pick up as we approach the busier spring and summer months. Don’t miss our Words of Wisdom section where we are reminded how to find meaning in our work. Please continue sending us topics of interest so we can cover them in future newsletters. Thank you for reading!
As working adults, most of us spend the majority of our awake hours working. A recent study showed that the average person works about 39.2 hours a week. This has to be a national average as I don’t know anyone in Los Angeles that works only 39.2 hours a week. Assuming 39.2 hours a week, a 50 year working life will equate to approximately 35% of one's life. If you are not enjoying your work and you find yourself miserable doing what you’re doing - that means you are going to be miserable for at least 35% of your existence. That’s scary!
More times than not, I find it’s less the work we do that helps us be happy, it’s more the attitude we bring to our work. If you are in a rut at work and hate what you do - you need to make a change. You can’t afford to be miserable for 35% of your existence. It’s important to find work that is fulfilling, but more importantly - you need to bring the right attitude to the job. If you are just working to work and collect a paycheck, you will most likely suffer. But, if you bring the right attitude to your job, do the best you can no matter the task, and you always strive to be better today than you were yesterday, fulfillment will come easier for you. Here is some great advice on how to find meaning and fulfillment at work. Again, this is nothing you don’t already know. More of a reminder. I hope it inspires you to make a change, if a change is needed. D. Adelpour.
As we approach April, expect to see more inventory coming out. We are still in a very low inventory environment right now, and buyers are showing hesitation. With interest rates higher today and the rise of property values, demand for homes are declining in certain zip codes. Buyers are very sophisticated in today's market. They have access to a lot of information and have a general sense of what properties are worth. As such, it’s critical you price your property correctly.
I promise you it will hurt you in the long run to price high initially and continue to reduce until a buyer makes an offer. Review your pricing strategy and make sure you are within 5% of actual market value - unless you are going with a Conventional Pricing Strategy (ask for details of how this may work for you).
Expect to see demand to increase for the next 3 months, but also expect to see inventory increase as well. Depending on your area, the ratio may or may not be in your favor.
Let us know your address and we can provide you with the current buyer/ seller ratio to help you determine the best price/ pricing strategy. 310.573.8670 - Dennis@DennisAdelpour.com
Advice for BUYERS:
The problem of low inventory still exists but the good news is that property values are not going up as fast as they did last year. In fact, we saw a very small dip in prices recently. A clear indication that the market is slowing.
Off market deals are still a great way to find the home you want. Many times, these are purchased at a discount because the seller is willing to sell for a lower price for the convenience of selling off market. It’s a win-win for everyone.
Inventory will start to pick up in April and continue to climb into the summer months. This is the “hot” selling season. Again, make sure to review properties again that have been on the market for 60 + days. Those homes maybe ready to accept a lower offer.
Make sure your financials are in order. We say this every month because it’s so important! Don’t procrastinate getting your pre-approval letter ready. We are seeing some great alternative loan programs for those with less money down. This is a great opportunity for those that don’t have the 20% down payment. The average homeowner stays in their home for 7-10 years so a 10 year fixed product maybe a great option as the 30 year fixed rate climbs.
Contact us for trusted lenders that have these types of programs. 310.573.8670 - Dennis@DennisAdelpour.com
MARKET UPDATES
Welcome News For Buyers: Prices Went Down In January!
