Trending: Multiple offers in all price points from $500,000 up to $5,000,000 is the reality of the moment. And yet, as wonderful as that sounds, proper pricing is critical to achieving robust interest in any home. We are not in a market climate that can absorb overpricing. Bottom line: Buyers need to be pre-approved for loans because you are competing with “all cash” offers and Sellers need to be sensitive to recent comparable sales to create the optimal pricing strategy.
Million dollar home sales continue to climb statewide: According to an article in the LA Times last week, Million-dollar-or-more home sales statewide surged in the second quarter to the highest level since the third quarter of 2007 as the economy and mortgage availability improved. The 7,763 homes sold at $1 million or more from April to June represented an 18.5% increase from the same period last year. It was the most sales in this price range for a quarter since 2007, when 10,946 closings were recorded. Though this is good news, we are still at less than half of the highest quarter number of sales for $1-million or up houses which was the third quarter of 2005, when 15,898 homes changed hands.
Be weary of what you read on the internet: I monitor many real estate blogs, especially those that have been bearish about Westside real estate over the past eight years. They provided good information that I could pass along to my readers, especially from 2005-2010, but many of them have either stopped posting or are providing erroneous information to try and prove the market is unhealthy. As late as last month one site tried to claim the 90402 zip code is down over 20% compared to last year when in actuality it is up around 10%. On the end of the spectrum, I appreciate sites like the Santa Monica Distress Monitor who started off writing about inflated real estate prices but has adjusted with the market and gives a balanced look at the market.
Information from a great realtor is key: Some people are weary of hearing information from realtors thinking it will be jaded and that is understandable as some in this business do not have great ethics, but you are far better off finding a trustworthy professional who provides real time info so you can make the right decision. The media is usually a few months behind what is going on and that difference can cost you tens of thousands of dollars and/or missing out on a wonderful home.