Home Sales are waaaaay down, but price isn't

I just read in the LA Times the numbers for June. They are all over the place. Over all, the median home price for Southern California has gone up almost 2.5%, amazing since the inland empire has gone down in both price and sales. Sales have fallen everywhere, sorting out the people that want to sell, the people that want to sell with unreasonable expectations, and the people who have to sell.
I'm looking at the numbers, so I'll just write them in. Antelope Valley: Sales decrease 62% and median prices down 13%. Ventura County: Sales decrease 27.8% and median prices down 7%. Los Angeles County: Sales decrease 32.5% and median price increase 4.8%. Orange County: Sales decrease 31.6% and median prices increase 0.4%. San Bernadino County: Sales decrease 47.2% and median prices unchanged as a whole, with ups and downs scattered. Riverside County: Sales decrease 50.1% and median prices decrease 5.9%. Lastly, San Diego County: Sales decrease 22.6% and median prices decrease 1.9% (falling to where it was August 2006). When looking at these numbers, keep in mind that these include all sales, existing homes, condos, and new homes. New homes really pull it down with the vast amount of inventory and poor builder confidence, but that makes it a great steal if one decides to live there for a few years. They will give many upgrades and buyer incentives to get those sold, because less money than expected is still a return coming in instead of an investment going out.
Ah the buyers market. As inventory decreases and educated confidence in the market becomes stronger, the full buyers market will appear and the cycle will begin again like it has every 10-12 years.

Buyers, sellers, and investers in 2007

Let’s talk about the market for a bit. Buyers, sellers, and investors, where are they for 2007 and on? In an article by LA Times, they broke down the market into three levels. Leslie Appleton-Young of CAR (California Association of Realtors) explained that the three levels are low cost entry level homes, upward median homes, and luxury homes and estates nearing eight figures. The reason for this is to organize and explain whose market it is. Whose market is it, buyers’, seller's, neither, or both? Appleton-Young said both. In entry level homes and luxury estates, the seller is pretty much in control of price and terms. This, however, is not the case with median homes. With the majority of the market, sellers have to be willing to make their home appealing in appearance, terms, or incentives. Buyers have many options, so becoming the option they pick is key. But, as stated earlier, if it’s appealing and priced right, it will go, no question about it! The market is cyclical, what goes up must come down, but it's like the saying two steps forward and one step back, either way there is progression.
Investors who are open to the idea of investing outside of the United States are being introduced to a mind boggling world. The market is very specific to location, and no two areas are alike. In Europe for example, the countries entering the European Union are facing an explosion in multiple markets of trade, retail, employment, and of course real estate. This is not for everyone though, so if you have any questions, I can answer them personally or by email. A question answered is, well, one less you have to ask later.

Story of a homebuyer in mid- 2007

I would like to share a recent story to illustrate the market and the term, “buyer integration.” Keep in mind; I’m not trying to sell myself. I’m trying to sell the market as what it is for buyers and sellers. For the last three months, my client and I have been looking for the right property for her. We went to view properties and thought we found it the first day. Gorgeous place, in her price range and in the area she desired. After a handful of calls and emails, we concluded that they didn’t sell it. The property was later taken off the market. A day or two later, I get an email from my buyer…titled, “Plan B.” We viewed those, agreed on one, and went for it. When I called, it had an offer. The week after, I found a few more and emailed her the listings… “Plan C.” We found one with the same floor plan as plan B, so we put an offer on it. Long story short, they were unmotivated and leased the place when we cancelled the offer. Why did we cancel the offer? Plan D, the condo next door, same floor plan, was listed at the same price and was much better. This place is beautiful, well kept, and since the owners had it for long enough, they were motivated, willing to make a deal with us, and we are now in escrow. We could not have found a better place for her to call home. We even had to switch lenders to get her the best rate, service, and satisfaction possible!!
So, after patience and a willingness to work all the way to “Plan D” with a “Plan B” loan, my client is happy as can be that after a short, thirty day escrow, she will be able to call this place home. That is what it is all about!! The market is such that buyers can find exactly what they want, given the inventory numbers and the ever increasing willingness of sellers. Sellers are making money off their properties if they have owned it for a little while. These Sellers are beginning to feel the motivation of the buyers and are more confident to list their home. They, in turn, become buyers to do what my buyer just did…find the place of her dreams at the price she can afford! Where are you in this dream?

Ipods, awesome but potentially hazardous

Let’s talk about something we should actually worry about. Ipods and other MP3 players have catapulted the 21st century into a digital age. They provide hours if not days of music without having to repeat a cd, rewind a cassette, or what ever you do with an 8-track. Is this a crime? Most certainly not! What should be considered carefully though, is the volume at which they are played. An article on usatoday.com said that according to some independent research, Ipods can play music at up to 120 decibels. If that number doesn’t say much, go for a stroll down a runway and listen to the airplanes taking off. Or, you can attend your favorite concert, just be sure to get a spot near the speakers for the full effect.
In France, the government contacted Apple and requested the Ipods imported into their country be set at 100 decibels, “only” about as loud as a chainsaw. This is one attempt to save hearing loss for later years. Please, enjoy your music as much as you want, but remember to enjoy your hearing more.