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Real estate prices going up or down?

May 17,2020 | Posted By Flavia Brown in Real Estate
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According to the "experts" and economists, real estate property values are expected to decline only slightly in the South Bay of L.A. County and most of the County during the remaining eight months of 2020. However, nobody knows for sure whether prices will increase or decline. For example, prices in the most desirable areas may increase. The four primary reasons for only a slight or no decline in many areas are: 1) Since the past holiday season there has been a pent-up buyer demand because many potential buyers were idle. The pent-up demand is still going on, and many of these buyers still need to buy, and many sellers still need to sell. 2) California’s housing shortage will continue for years. Statistics show a shortage of 3-4 million homes. [visit Wikipedia.com and enter California housing shortage. Scroll way down to "Quantifying the shortage" and read the first section. The last sentence reads 4 million units behind demand}. 3) Mortgage interest rates are very low and will probably remain low until at least to the end of 2020. 4) Rental rates are very high and will continue increasing, mostly because more than half the adults can't afford to buy in California, and because of the housing shortage.
 
For what it may be worth, there are many good deals for buyers on various kinds of properties. Many sellers are "over-eager" to sell, and some desperately need to sell, for a variety of reasons.
 
One thing for sure is that buyers and sellers are still active. Property inspectors and appraisers are still busy, and they are required to do their onsite physical inspections for purchased properties (virtual and drive-by inspections are okay for refi transactions). As of 5/17/20 there are 5,000 residential properties and 1804 income properties currently for sale (listed on the MLS) in L. A. County. 

Most “experts” and economists expect L.A. County property values to decline by 2-4%. It could amount to more or less, depending on the specific city, neighborhood, and desirability of the specific location. Zilllow has been criticized for their inaccurate Zestimates, but they have a good research department. They predict a 1.7% decrease in property values for L.A. County by the end of 2020. Meanwhile, the market looks favorable for buyers because interest rates are still very low, and most sellers are in negotiable mode. I can find or create good deals for my buyer clients.

As always, I will help any way possible, and your questions are always welcome. Just call, text, or email me and I will respond quickly. 
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Flavia Brown 310-702-6335, homesbyflavia@gmail.com

 

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