Sales Are Up - But is the Real Estate Market Really Getting Stronger?Posted by Bowling Schaefer on February 23rd, 2021 "Going Beyond The Numbers" Insiders Report: A new report shows an surge in home sales as well as a slight gain in prices. On the surface this is great news for Los Angeles, Ca homes for does this implies an excellent recovery is on the horizon? Probably you need to look beyond the numbers to know why. Home sales in Los Angeles County as well as the remainder of Southern California hit a three-year high in July and prices continued to set as buyers turned their focus to more costly properties, an industry 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 point about this report may be the activity inside the "higher priced properties" which has boosted the modest rise in prices over the past few don't expect those increases to last. The increase using this sector has pushed more by "investors" bottom feeding on distressed properties than house buyers trading up into bigger, higher priced homes. The economic fundamentals remain not sufficiently strong enough to sustain any real momentum inside the "jumbo" market, however the report from DataQuick points too "some buyers are migrating to more expensive properties." During i was reading this , fifteen percent from the mortgages issued were for properties priced above 7,000, essentially the most since last August. These type of mortgages employed to command as much as 40% from the this sector includes a long distance to attend regain any real share of the market. There remains to be a substantial wave of future foreclosures within this sector that have to be absorbed into the market place in the months ahead. For this that occurs at any level that can demonstrate real growth, the economy must be in a far better place compared to currently. "Normally, three to six months has to be really strong indication that that prices have flattened out - perhaps the biggest issue is we aren't in normal times," said DataQuick analyst Andrew LePage. "We're just coming from, or still in, a deep recession." Web Site , market watchers expect another spike in foreclosures inside coming months. "The recent drop in foreclosure resales, as well as the rise in high-end sales, has helped stabilize some with the regional home price measures. But there's still a large amount of distress on the market," DataQuick president John Walsh said in a very statement. The real strength on this market arises from the lower end the place that the fundamental less difficult stronger. Buyers hunting for a Los Angeles mortgage will take benefit from FHA government insured loans that supply down payments as low as 3.5% and lower rates of interest than the "jumbos." A Jumbo Los Angeles home mortgage takes a larger downpayment and higher rates for many who finding enough qualified buyers to keep this sector stable and growing seems unlikely for now. If redirected here aiming to enter in the upper end of the market, time is in your favor. The upper end in the market doesn't figure to turn around until their is sustained economic that's improbable that occurs in the near future.Like it? Share it! More by this author |