Finding a bargain in the LA County home sale market can be somewhat difficult because prices have been appreciating. One casualty of the appreciating market are distress sales. Take a look at the graph above, and you’ll see that throughout LA County (quite a diverse and large area), traditional equity sales made up 89% of all sales. The remainder of the home sales were foreclosures and short sales. Peanuts! That’s not to say that a traditional sale can’t be a bargain sometimes – they exist! And that’s not also to say that a foreclosure or a short sale is always a good deal – they’re not!
In an appreciating real estate market it’s harder to find a below market value deal. It’s certainly possible, but you have to look harder and longer. Unless you have the luck of the Irish of course.
The question I pose to my “deal-seeking” clients is: Are you going to stay the course until you find that deal, waiting months possibly in an appreciating market and exposing yourself to fluctuations in interest rates, or, hop on that real estate train and buy now while it’s moving? Price appreciation has cooled down, which is great for buyers. But, interest rates are still extremely low which is a great incentive to not rent, and instead buy! It’s why most of the home sales in the Santa Clarita Valley are well under $500,000… there are a lot of entry-level type home buyers out there either buying their first condo, or their first single family home after selling their first condo.
If you’re not in a rush you can certainly find a deal, especially if you’re working with a resourceful Santa Clarita real estate agent. Many home buyers are in a rush though. Quite a few are selling their home in order to buy a new one… and they’re in a pinch to get the new one under contract once finding a buyer for their current home. That doesn’t leave time to find below market value deals. Not that there are many anyways. In an appreciating market most sellers are the same; they want a premium. You would, too!
Thinking of buying or selling a Santa Clarita home? ASK Robert! I can be reached today @ 661-373-2374.
