With some of the nation’s highest median home prices—and more than a few of its priciest individual homes—Los Angeles property owners collectively possess a massive pool of real estate equity worth an astonishing $760 billion.
That’s according to a new report from real estate analyst Black Knight. The study shows that Los Angeles leads the nation in “tappable equity,” that is, the value of homes that owners can access by selling or refinancing.
According to the California Association of Realtors, California home sales bounced back in February 2019, after hitting the lowest sales level in more than 10 years the previous month. February's annual sales level was the highest in six months, and the monthly growth in sales was the highest since January 2011.
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 399,080 units in February, according to information collected by C.A.R.
The statewide annualized sales figure represents what would be the total number of homes sold during 2019 if sales maintained the February pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
Plenty of people find themselves buying and selling a home simultaneously, but knowing that others have gone through the same stress does not make it one bit easier. After all, the stakes are so high: If your buyer backs out, you don't have any cash to land your next home! Or if your own purchase falls through but your current home sells, you're homeless!
It's all like walking across the Grand Canyon on a tightrope: The tiniest thing goes wrong, and you fall.
It turns out that most buying-and-selling mistakes are easily avoidable—or at least predictable. Follow these eight tips to enter escrow with eyes wide open.
1. Waiting too long to prep your home for selling
Despite a real estate slowdown gripping the nation, this year's housing market is expected to be busier than economists originally predicted late last year. That means more home sales are on the way.
The anticipated activity is due to lower mortgage rates, which make homes more affordable for buyers. The economists expected rates to climb to 5.5% in 2019, but instead they have hovered around 4%. (They were 4.17% on 30-year, fixed-rate mortgages as of April 18, according to Freddie Mac data.) Economists say rates are now likely to rise a little to 4.5%, still well below what buyers were dreading.
However, it'll be nothing like the feeding frenzy of recent years.
As I always mention in my seminars, what's happening in your local real estate market is based on location (including the micro concerning neighborhoods) and price point/TIERS. Although this graph could be considered "old" since it only goes up to Jan 2019, it is still a good indication of the market overall and where it may be headed.
**Price Index: Percentage number that shows the extent to which a price (or a 'basket' of prices) has changed over a period (month, quarter, year) as compared with the price(s) in a certain year (base year) taken as a standard. See also consumer price index.
** Source: businessdictionary.com
Crissi Avila will teach you how to buy smart. We’ll look at location, development, and turnover so you can spot opportunities long before most even start considering them.