Tag Archives: Rodeo Realty

Real Estate Market update December 2018

 

As we wind up the year, I wanted to share an update on the current local Los Angeles Real Estate market.  I have been hearing people talk about what they think is going to happen and some who have said that they think that the market will implode and crash!  

Please understand, we have not gone from a good real estate market to a bad real estate market. We have gone from an abnormal market to a normal market. The abnormal market was where there was only one month of inventory, interest rates unusually low, almost all homes on the market got multiple offers, and prices went up every month.

A normal market has a healthy amount of inventory and buyers have choices. It is more important than ever to hire an agent with skill and experience!  How can I be of service to you?
Warmly, 

Revi Mendelsohn, Realtor | The Mendelsohn Group Rodeo Realty Beverly Hillscell/txt: 310-963-7384fax: 310-388-1101Click here to book a phone appointment with Revi
[email protected]www.TheMendelsohnGroup.com5 Star Zillow Reviews
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We are nowhere near Bubble Range!!

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There are some industry pundits claiming that residential home values have risen too quickly and that current levels are on the verge of another housing bubble. It is easy to see how this thinking has taken form if we look at a graph of home prices from 2000 to today.

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The graph definitely looks like a rollercoaster ride. And, as prices begin to reach 2006 levels again, it “seems logical” that the next part of the ride would be downhill. However, this graph includes the anomaly of the price bubble and the correction (the housing crash).

What if the bubble & bust didn’t occur?
Let’s assume that instead of the rise and fall in home prices that we saw last decade, we just had normal historic appreciation from 2000 to today. According to the 100+ experts that are surveyed for the Home Price Expectation Survey, normal annual appreciation for residential single family homes from 1987 to 1999 was 3.6%.

Starting with the median home price in 2000, we added 3.6% to it each year since then. Here is that graph intermixed with the above graph.

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What this shows us is that, had the bubble and crash not occurred and instead we just had normal annual appreciation over this period, prices would actually be greater than they are today.

Bottom Line

There is no reason for alarm as prices seem to be right in line with where they should be.

Want to talk about what this means to you as a buyer or seller? Call Revi today! 310-963-7384

Source: Keeping Current Matters 2016