Los Angeles, CA

Getting Into The Real Estate Market

David Clark

Welcome Home to the North Pasadena Heights Landmark DistrictDavid Clark

If you're focused on becoming a first time homeowner or expanding your portfolio the time to buy is now. Let me offer my argument before you lose the opportunity. Buying a home during a recession can lead to a great deal! To make it clear I am not comparing apples to oranges, meaning today's current market is not the same market as in 2008. The 2008 recession and housing market crash showed how closely the economy is tied to home prices. This recession on most levels was caused by a pandemic and not the subprime mortgage rates. Also, the 2020 recession isn’t correlated to the housing market. Although any recession will affect the housing market in some way, this time around it hasn’t caused it to collapse like with the massive defaults on subprime mortgages. So if you're sitting in your rental waiting for the Sunday edition of The L.A Times front page to read the headline, “Real Estate Crashes in Los Angeles” to finally jump into the market you may be disappointed. Often reality isn’t as fun as fantasy. Why not build the lifestyle that you want around the fundamental truth that you're either paying yourself or someone else, and I like to pay me!

Any recession will affect the housing market, since many buyers don’t want to make such a huge financial commitment when the economy is on shaky grounds. Sellers equally get the jitters and often relinquish properties in light of a lack of liquidity or fear. Now is the time to build the life that you want through the investment in both yourself and residential real estate. You won’t have to trip over bodies at the open houses with Boho decor and one bad dream catcher after another. Do you have your last two pay stubs, last two years of filed taxes, 3% down for a place welcome aboard! With mortgage rates still historically low, you can refinance on down the road while your building equity in your future.

If you tried to buy a home during the pandemic, you know the limited supply of homes for sale brought forth challenges. Bidding wars and competition were fierce and winning an offer meant having a winning team. Over the last two years, the rate of home prices appreciated at a dramatic pace. While that led to incredible equity gains for homeowners, it’s also caused some buyers to wonder if home prices will fall. It’s important to know the housing market isn’t a bubble about to burst, and home price growth is supported by strong market fundamentals. (mykcm.com)

With the imbalance from demand and supply there was considerable upward pressure on home prices which tends to happen during a sellers market. While housing inventory is increasing and buyer demand is softening today, there’s still a shortage of homes available for sale, and I don't see either the private sector nor Sacramento with a brighter outlook. That’s why the market is seeing ongoing price appreciation. In other words, even with higher mortgage rates, moderating buyer demand, and more homes for sale, experts say home price appreciation will slow, but prices won’t decline. What will decline is the number of offers buyers receive and thus your competition.

But what was once your greatest challenge may now be your greatest opportunity. Today, data shows buyer demand is moderating in the wake of higher mortgage rates. Here are a few reasons why this shift in the housing market is good news for your home buying plans. There were many reasons for the limited number of homes on the market during the pandemic, including a history of underbuilding new homes since the market crash in 2008. Housing supply is well below what the market has seen for most of the past 10 years, yet is currently trending higher. The Federal Reserves current policies are helping to moderate demand which is slowing the pace of home sales and that's one of the reasons housing supply is finally able to grow. (mykcm.com)

N.A.R. Histogram of Bidding War DeclineNational Association of Realtors

Some takeaways here are you have more options and less competition today. Just remember, while easing, data shows multiple-offer scenarios are still happening – they're just not as intense as they were over the past year. You should still lean on an agent to guide you through the process and help you make your strongest offer up front.

There are nearly one million renters in our Los Angeles communities that can afford to purchase a new home. The tap on your shoulder is here. Let's connect today! Buying today means you can get ahead of future price increases, and benefit from the rise in prices in the form of home equity. Pay yourself first! From lender to brokerage, agent to escrow it matters who you work with. Please reach out to me with the Shelhamer Real Estate Group, for answers to your questions, further discussion, or to expand or build the path to your real estate future.

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A passion for California history, writing, architectural preservation, and extensive sales background drew me into becoming a residential real estate advisor. Above all else service to the communities I live in and explore.

Los Angeles County, CA

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Los Angeles, CA

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Elderly couple taking a walk through the park. Arboretum Trompenburg, Rotterdam.Michele Dot Com. The next chapter of our lives often brings perceived challenges, not from the acceptance of the truth that we all are aging, but the judgments that we create in response and often lack of action to that truth. As a real estate professional with aging clients I have been in sales and service to an older demographic for decades and one of the most important kernels of wisdom that I have received from this privilege is that the older generations are nearly always modeled around self sufficiency, and the roll up your sleeves mentality. Today's generation relies on google searches, social networks, Reddit forums along with video tutorials on YouTube to gather our information, purchase our tools and get the job done. We aren’t always the first to ask for help but when we do we come to appreciate the community that we build and the network of resources and people that unite in pursuit of the goals that we set forth to reach. The older generation, as I have heard from my own parents, don’t want to be a burden. This leaves the aging people in our communities in a very isolated and lonely place. Our elders with the knowledge and wisdom we yearn for in this information age have become marginalized and more often than not forgotten. I spend a great deal of time each week out in the communities that I am privileged to work throughout Los Angeles waving and drumming up casual conversations with some phenomenal people. It has been a wonderful experience for me personally and professionally, as I have come to be of service in both areas. In return I have gained more than I could give which continues to keep me out there reaching more neighbors and future clients and simply in each given day trying to make a difference. This personal story brings me to an experience that I wanted to share with you.

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