Sales Are Up - But is the Real Estate Market Really Getting Stronger?Posted by Davies Moody on February 15th, 2021 "Going Beyond The Numbers" Insiders Report: A new report shows an boost in home sales and also a slight gain in prices. On the surface this really is nice thing about it for Los Angeles, Ca homes for does this implies an excellent recovery is coming? Probably you could consider looking at night numbers to understand why. Home sales in Los Angeles County as well as the all Southern California hit a three-year an excellent source of July and prices continued to tense up as buyers turned their focus to higher priced properties, market tracker said Tuesday. HOME SALES Southern California home sales/median price: July 2009: 24,104/8,000 July 2008: 20,329/8,000 LA County home sales/median price July 2009: 8,082/1,000 July 2008: 6,592/0,00 The interesting part of this report will be the activity inside "costlier properties" that has boosted the modest increase in prices throughout the last few don't expect those increases to last. The increase because of this sector is being pushed more by "investors" bottom feeding on distressed properties than home buyers trading up into bigger, more expensive homes. The economic fundamentals remain not sufficiently strong enough to sustain any real momentum within the "jumbo" market, although the report from DataQuick points too "some buyers are migrating to more costly properties." During July, 15 % with the mortgages issued were for properties priced above 7,000, probably the most since last August. These type of mortgages employed to command as much as 40% with the this sector features a great distance to go to regain any real share of the market. There remains a big wave of future foreclosures with this sector that have to be distributed around the market industry place in the months ahead. For this that occurs at any level that may demonstrate real growth, the economy will have to be in a very far better place than currently. "Normally, Continue to 6 months would have been a really strong indication that that prices have flattened out - ths issue is we are really not in normal times," said DataQuick analyst Andrew LePage. "We're just appearing out of, or still in, a deep recession." Not surprisingly, market watchers expect another spike in foreclosures inside coming months. "The recent drop in foreclosure resales, in conjunction with the rise in high-end sales, has helped stabilize some of the regional home price measures. But there's still home loans melbourne of distress available," DataQuick president John Walsh said in a very statement. The real strength within this market comes from the low end the place that the fundamental less difficult stronger. Buyers hunting for a Los Angeles mortgage usually takes benefit of FHA government insured loans that offer first payment only 3.5% minimizing rates compared to "jumbos." A Jumbo Los Angeles mortgage needs a larger downpayment far better rates for those who finding enough qualified buyers to maintain this sector stable and growing seems unlikely for now. If you're a buyer aiming to type in the upper end with the market, time is in your favor. The upper end of the market doesn't figure to turn around until their is sustained economic that's improbable to take place in the near future.Like it? Share it! More by this author |