High-priced homes and over-priced homes are sitting on the market, but low-priced and correctly-priced homes are selling like hot cakes ... and buyers are making money.
Many of these low-priced offerings are foreclosures, short sales, or bank owned. Some need a lot of work, some don't. Some will be rehabbed and flipped, and some have already been redone. But many of these houses and condos are selling fast and with multiple offers.
With some homes listed at prices not enjoyed since 2001 and 2002, we are seeing at least two kinds of buyers in great numbers:
1) Investors who are buying houses to fix and flip, or to keep as a rental property.
2) First-time home buyers who can finally afford to buy their own home.
The investors are everywhere. Many of them are real estate agents, brokers, contractors, or do-it-yourself types. They are looking to make a much greater return on their investment than banks can offer.
The first-time buyers are realizing that the combination of low prices and low interest rates are creating a payment lower then renting. They are also aware of all the added tax benefit.
Both groups are very much aware of the long-term appreciation possibilities. Many believe that in several years the market will turn up again, as it always has, and they will have turned their down payment into an annuity.
Some long-term buyers are even paying cash. They are not to impressed with the return they are getting on their savings, and also see real estate as a hedge against inflation.
In Toluca Lake, there are five houses on the market with asking prices listed below $700,00. According to the CRMLS, our local multiple listing service, they range in size from 1,144 to 1,879 square feet with asking prices as low as $450,000.
Studio City shows eight single family homes priced between $406,000.00 and $600,000. these show two or three bedrooms and from 749 to 2370 square feet. Some are south of the boulevard.
North Hollywood has 53 houses listed for sale with asking prices at or below $300,000, and 27 of these are priced at or below $260,000.
This may well be the time to purchase a first home, or a rental home. It may also be the time to call our friends living in the cold on the East Coast or mid west and get them to move to the most beautiful place in the world.