Los Angeles Real Estate

Sometimes homebuyers feel they need to wait another day, week, or month before they start looking for the right home. What they don't know is that behind the scenes the market is stealing great homes right from underneath their noses. By the time these reluctant buyers come up for air, the only thing they will be able to afford is a run down property in an area with an undesirable crime rate.

Don't believe me? Take a look at this link that I've included in this article. Scroll down to the graph titled "Single Family Sales By Price." Once you get there, look at the left side and find your home price category. We'll take an example of the category from $250,000- $350,000. Since last year in July compared to this year, the number of homes sold has increased from 22 to 183. That's an 831% increase!!! The category from $350,000 - $450,000 has increased 432%. Smart investors don't buy into the hype that the media portrays. Smart investors know that they will lose purchasing power if they don't prepare for a purchase immediately!!

http://www.srar.com/members/stats/charts/2008/july/SFVGraphs.pdf

This is even more important for renters to understand. The longer they wait, the less desirable home or neighborhood you will be able to purchase. It will eventually get to the point that renters will not be able to afford anything at all until the next down cycle hits in about 10 years. By that time, you will need to have tripled your income to be able to afford the same home you could have purchased today.

Take heed, reluctant home buyers...your boat is leaving port and your passenger ticket is soon expiring!

Paul Aragon is a top rated licensed realtor in the Northern Los Angeles County. He can be contacted at (818) 528-4410 and welcomes questions from all real estate owners, buyers, and investors.

Here's a link to a chart that shows September's ACTUAL statistics for the Local Real Estate Market. These are the graphs that the news media doesn't want you to have. Why? because they go contrary to the negative hype that the news media wants to perpetuate.

CLICK HERE FOR CHARTS

When you click on the link, scroll down to the chart that says "Single Family Sales By Price." Look at the category that you are planning to purchase a home or sell your home. If you are a homebuyer and the green bar is longer than the blue bar for your category, you are in trouble. This means that the market for that segment is VERY hot and if you don't purchase soon, you may have to lower your standards for the type of home that you can afford or move to a less desirable city.

If you are a homeseller and the blue bar is longer than the green bar for your category, you are in trouble. This means that the market segment is continuing to decline for your price range (better plan ahead and lower the price on your listing).

If you haven't already noticed, foreclosures are the majority of the inventory in this market. Buyers- beware of buying foreclosures that have structural problems. These homes are not meant to be purchased by owner occupants, they are meant for contractors or investors. Sellers- beware of keeping your prices too high and negotiating yourself out of the market. The next time you'll experience prices like we saw in 2006 will probably be in 2012. If you can wait that long, then stay where you are. If you can't, MAKE your move right now before interest rates go up.

Paul Aragon is a top rated licensed realtor in the Northern Los Angeles County. He can be contacted at (818) 528-4410 and welcomes questions from all real estate owners, buyers, and investors.

"As people wait for the federal government's various bailouts and rescues to trickle down and stabilize the economy, they got more bad news: The cost of financing or refinancing a home purchase has gotten more expensive.

The average interest rate on a 30-year fixed-rate mortgage jumped to 6.74% (6.4% for a 15-year), the biggest weekly increase in 21 years, according to Bankrate.com's survey of lenders. Last week's Bankrate benchmark was 6.2%.

According to Bankrate, the new rate means the monthly payment on a $200,000 mortgage would be $1,295.87, about $70 more than it would be for a buyer who locked in a rate last week. "  (from MSN Money. Full article link is below.

Ok...don't say I didn't tell you...

In my previous post, I mentioned the importance of making your investment decision in a timely manner before your investment parameters are skewed to your detriment. The global economy is effecting how you optimize your home investment- without you even knowing it!  Be informed of how these parameters work and you can still build wealth and equity over the next 8-12 years.

For all of you who are still renting or know of someone who is renting, you need to jump into this market right now with all your efforts. The escalator of equity is poised to start going up and you will be left on the bottom floor for decades to come! The rest of the article mentioned above can be read by clicking the link below. I hope this information helps you in your decisions about future wealth building.

Paul Aragon

Pinnacle Estate Properties

(818) 349-5500

ARTICLE LINK