Explosion felt in Lakewood
While most events are covered by the mass media an explosion occurred recently in Lakewood, Ca. that went quietly unnoticed. There was plenty of pain and injury involved but it most likely occurred months ago. It's curious that the event went uncovered because it had all the necessary ingredients to make a provocative story. However, this particular explosion was unusually quiet. There were no sirens, no chaos, other than alot of busy Real Estate Consultants. You see, the explosion was home sales DOUBLING, that's right, a 100% increase over this same time last year. Granted, prices are down from a year ago but buyer's are scouring the inventory for the best of the best and buying at a robust pace.
This type of sales activity gives support to current prices. Are we AT the bottom? If not then it sure seems like we're very close. When buyer's absorb homes for sale in Lakewood Ca. at this rate it leaves fewer and fewer of "the best". Most recently any offer that my buyer's wanted submitted was one of 8 - 15 offers. Seem incredible? It really is. This market has defied many of the norms, fooled many experts and yes, caused it's share of pain for those who lost their home, their dream, their sanctuary.
All that is certain is that this is a BUYER'S market. But it will not last forever. The burning question...Where will you be living when it's all over? If you said Lakewood you have chosen a serene and delightful place to call home. Don't wait until you KNOW, without a shadow of a doubt, that prices have bottomed. You see, at that point the pendulum will have to start swinging back to the sellers and you will have lost something extremely important to you...your negotiating power. Sellers will feel that it is in their best interest to wait while the market slowly comes back. Each month they wait will bring equity and appreciation to them. Concessions, such as closing costs paid by the seller, or an extensive list of repairs paid for by the seller will be harder to come by.
Here's something to consider. On a mid-priced home if prices go down $10,000.00 but interest rates go up 1/2 percent your payment actually GOES UP $87.00 If you haven't considered PAYMENT vs. PRICE in choosing your home check back soon. My next post will cover this concept and undoubtedly assist a home buyer that really could afford to quit paying rent and own but hadn't realized it.
It is a buyer's market but it will not last forever. Where will you be living when it's all over?