The media portrays the real estate climate as daunting, where mortgage rates are going up, affordability is going down, and combined with inflation and a nearing recession, the sum total means doom and gloom. In real life, there’s still extremely limited inventory and when a good house hits the market, there’s more demand than supply. What we’re finding is that a good house priced correctly is still getting multiple offers and selling to an excited buyer.
The buyers and sellers on our 25 escrows are going about their deals as they always do, and the interest rates the buyers are paying on their loans are not an overriding factor that’s playing a big part in any deal, or in a different way than it’s ever been in the past.
People say, “But it’s coming.” “There’s just a lag.” “In six months you’ll see it.” In real life, people always need to move – both to sell and to buy. Market value is determined in every market by the price a willing buyer is willing to pay a willing seller for their house. That price is no doubt influenced by market conditions, which is a product of supply and demand, mortgage rates, inflation, and general market sentiment. But there will ALWAYS be a price that buyers and sellers will pay to transact with each other. For the time that I’ve been selling real estate for the past 16 years, there has ALWAYS been limited supply and higher demand in our area, and there has ALWAYS been a consistent increase in value in the houses in our area over time. I don’t believe that NOW it will drastically change, even if at some point there’s some adjustment and correction along the way to get back to the historical trend of values consistently going up over time.
As in all markets, houses are attractive when they have a great floor plan, lots of natural light, handsome curb appeal, nice outdoor space, a good kitchen and master bedroom, good parking, and a nice location. Houses that are attractive usually attract multiple buyers. When a house attracts multiple buyers, it’s confirmation that it’s a valuable appreciating asset. Given the history of California real estate appreciation over time, it’s safe to invest in a valuable appreciating asset in our area, and I adopt the same strategy myself. I would both buy and sell in this market with confidence and comfort.
Our team was excited this week that the Real Trends Rankings came out for the Best Real Estate Teams in America and we were ranked by Real Trends as #38 in California. More exciting to us, in real life, is when each individual client we serve is thrilled with our service and with our final result. Most interesting is every client exceptionally served.
I am overwhelmed with gratitude for the magical experience of celebrating Raizy and Mordechai’s wedding with all our favorite people in LA! It felt so small town/connected community when Natasha The Tailor shared with us that so many people bought new outfits and brought them to her to tailor, and Esti Harouni shared that so many called her to do their hair for the local wedding. I love all the people who came to celebrate and to share our happy moments and I can’t wait to reciprocate and to do the same back! I LOVE LA!!!
We finished our celebrations this weekend with a speech by Mordechai. Mordechai mused that Seth spoke last weekend at Mordechai’s pre-wedding celebration, and Seth said that when a Groom is called up to the Torah the Shabbat before his wedding it’s with big fanfare. And when a Groom is called up to the Torah the Shabbat after his wedding it’s more quiet and routine. The reason is because the marriage celebration (and the Groom’s Family’s celebration that precedes it) is a big event, and the weekend after the wedding there’s a transition to the new but regular day-to-day state of now being married. At our post-wedding celebration this Shabbat, we had big fanfare and a choir singing as Mordechai was called up to the Torah as a newly married man post wedding. Mordechai’s thought is that in our family, the regular day-to-day is a big celebration. Every day is a gift and a cause to celebrate life to the max! I love that thought…and it’s true!
Have an awesome weekend!!!
Xoxoxo,
Sheri