The month of December continued to show signs of slowing in the real estate market, coupled with very volatile swings and steep declines in the stock market. A lot of national and international political pressures have caused the markets to feel very uncertain, causing investors as well has home buyers and sellers to panic. Both buyers and sellers are still in a holding pattern right now as they try to digest the health of the overall economy. We anticipate this to continue into January and February of 2019. Statistics and lead indicators are still showing a healthy economy, despite the heavy sell off in the stock market and the uncertainty surrounding the real estate market. We will have a better understanding of where the market is going after the 1st quarter of 2019. Review our Buyers and Sellers ADVICE section to best position yourself in this transitioning market. Don’t forget to watch our Words of Wisdom section where we discuss how to keep our New Years Resolutions. Please continue sending us topics of interest so we can cover them in future newsletters. Thank you for reading!
December has been quite a crazy month for the financial markets. The stock market has been extremely volatile with large and unpredictable swings in both directions. Unfortunately for most in the stock market, it’s been a very tough month. The month of December also showed further slowing in the LA real estate market with the number of sales down this month, compared to last year. Uncertainty, and now even anxiety surrounds the market more so than we’ve seen in some time. Political pressures seem to be one of the main catalyst for this sentiment. As volatile as the markets have been recently, I wouldn’t be surprised if the stock market has a nice pop up IF some of these national and international concerns are addressed and solved - that however is a big if.
This is not the same downturn in the market we saw in 2008 - where lending was irresponsible and negligent, causing the market to have a severe crash. Lending today is actually very strict and limited. At the moment, this appears to many to be a market going through a transition after a very nice runup of year over year price appreciation. It is possible that 2019 will be a year where property values fall in Los Angeles, or maybe the market levels off until we build a healthy supply and demand ratio. From a bird's eye point of view, the overall strength of the economy appears to be relatively strong - even though we have had such a drastic sell off in the stock market this month. Once the dust settles (which will probably happen after quarter 1 of 2019) - we will have a much better idea of the health of the market with some more educated predictions for the remainder of 2019.
ADVICE FOR SELLERS
Homeowners have really benefited by fast and steady price appreciation for almost a decade now. Most bull markets have about a 10 years life span before a correction or leveling off occurs. If you would like or need to sell your home - don’t get distracted by all the external factors and focus back on the basics of how to sell your home for the most amount of money. Make your home look as desirable as possible, create the best marketing material to tell the best story, make sure your agent really understands the product they are selling and PRICE IT RIGHT! The market is going to do whatever it’s going to do - but as Sellers and Agents, all we can do is control the controllables. Still lots of buyers out there that need to buy so don’t get scared and distracted by all the headlines you see in the news. Stick to the basics if you are considering selling your home.
ADVICE FOR BUYERS
If you are a buyer and you’ve been looking for quite some time now - my heart goes out to you. The home buying process has probably left you feeling down and hopeless. Prices have skyrocketed over the last 8+ years with interests rates climbing over the same period of time. Now, you have to think about a potential market decline and are wondering if now is even a good time to buy.
When there is a lot of noise out there, it’s always best to get back to basics. If your plan is to purchase a home to live with your family - you first need to determine what you can COMFORTABLY afford and have a pre-approval letter ready. Then, determine the location/s where your budget and lifestyle preferences match. Lastly, get the best deal possible. Remember, good deals and instant equity come from buying smart. You can find great properties that are 10% + below market if you put some effort into it. That way, if the market does go down - you’ll have some cushion. As always, look off market for the best deals. Fixers will almost always provide you the best opportunity to get a good deal. Market is crazy right now, but if you are looking for a home for you and your family to live in - stick to the basics, lock in a good interest rate and make sure you are comfortable with your monthly payment.
WORDS OF WISDOM
Why are New Year's Resolutions difficult to keep?
Any moment can be a moment for change. You don’t have to wait until New Years to do something different. New Years, however is a time where as a group - all of us have some inclination, motivation or desire to make a positive change so let us take advantage of that momentum. The collective energy to make a change during New Years is stronger than any other time of the year so let us not waste this opportunity. Starting to make a change is very hard - but sustaining that change is even harder. Statistics show that only 8% of New Year's resolutions are actually accomplished. How can we maximize our chances of achieving our goals? First, we have to know that change happens within ourselves first. Focusing on changing your external world without changing your internal world first will usually lead to upset and disappointment. Focus on the inside, and the outside will follow naturally. Also remember, life isn’t what happens to us, life is all about our reactions. Watch this great video for some great tips and inspiration to start your New Year off right!
On the eve of this New Year - myself and the Adelpour Group wish you a healthy and happy new year filled with positive reactions, meaningful work and some good luck!
