October 2018 Newsletter

The Adelpour Group

Dear Friends and Colleagues,

The month of October went as expected and held the usual trend of a slower market due to the seasonal effect. Statistics show that the number of price reductions in the LA real estate market has been increasing recently and are now at the highest number they’ve been since 2011. We will have to wait until the end of Quarter 1 in 2019 to truly understand what's going on with the market because the seasonal effect will no longer be a variable. Make sure you 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 remind ourselves that "Things could always be worse" and that complaining robs us of our present-moment happiness. Please continue sending us topics of interest so we can cover them in future newsletters.

Thank you for reading!

All The Best,

DENNIS ADELPOUR

M: (310) 573-8670 | O: (424) 245-5763

Dennis@DennisAdelpour.com

AdelpourGroup.com

DRE# 01773733

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MONTHLY UPDATE

The number of price reductions in the LA real estate market has increased this year and we are now at the highest levels we’ve seen since 2011. The amount of inventory has also been increasing, but still remains near historic lows. There is a great deal of uncertainty in the market right now, especially concerning interest rates. People are becoming very concerned with the recent behavior of the stock market on both the national and international level. We are currently experiencing a slow down in the real estate market, but this was expected due to the seasonal effect we always go through during this time of year. However, it is unclear what direct impact the increase in interest rates, changes in consumer confidence, and stock market’s behavior has had on the real estate market at this time. With that being said, there are still areas that are selling for multiple offers with the upper end of the market seeing more aggressive cooling than the entry level market. Interestingly enough, with the increases in interest rates, banks are starting to loosen their loan qualifications and are also offering more loan products for buyers who were unable to qualify just a few short months ago. There is definitely a change occurring in the market and even though there is a lot of chaos and uncertainty right now, the data shows that we’re heading towards an equal and more stable real estate market with a more neutral supply and demand ratio. To truly understand the current state of the real estate market and where it’s heading, we have to consider all of the variables and then reassess after Q1 of 2019 when the seasonal effect is no longer an contributing factor.

ADVICE FOR SELLERS

The main thing to remember with the market right now is to price your property right! If you don’t and end up overpricing, your property will sit on the market, may get stale, and force you into a position where you have no choice but to chase the market. When home owners overprice their property, they usually end up netting less on the sale of their home and it will almost always take you longer to sell. Price your property right the first time.

Buyers, especially younger individuals, are currently paying a premium for “Pinterest Properties” because they don’t want to deal with fixer-uppers. Pinterest Properties are homes that are already complete and don’t require much work when it comes to improvements. As a seller, you should do everything you can to ensure you have great curb appeal. A fresh coat of paint and a few touch-ups go a long way. If you are open to spending the time and money to maximize your sale, you should also consider investing in kitchen and bathroom upgrades because buyers are paying a premium for those improvements.

ADVICE FOR BUYERS

Prices are higher than they have ever been, but due to the current demand and supply ratio, this could be one of the best times to look. A great deal of sellers are in a frenzy because of how the market is changing, with some are even selling at big discounts. You should view today until the end of the year as an opportunity to get very aggressive when buying a house. Now that interest rates have increased, you should have a discussion with your lender because you may not get approved for the same amount of money you previously did at the lower interest rates. Off Market properties are still king, but you should also explore expired listings, previous rental properties, send letters, and knock on a few doors. These methods really work - but take some hustle!

WORDS OF WISDOM

"IT COULD BE WORSE"

We have all had our fair share of bad days, but can you pinpoint exactly what made that day so bad? Maybe you got stuck in traffic, were late to work, spilled your morning drink, or lost your job. You probably complained to anyone who would listen, but what did your complaining solve? No matter what the "reason", we create our own suffering by constantly complaining about EVERYTHING that happens to us. These inconveniences that occur in life are usually small and insignificant in the grand scheme of things but we suffer non-the-less. There are people in this world that experience horrific events in life, but can walk away from them with a smile because they’re just grateful to be alive. We must remind ourselves every day, no matter how big or small the events we experience are, it could always be worse. So ask yourself, was your day really that bad? Watch this video for a great reminder and deeper perspective.