Further, because you are buying in the low your investment dollar will go farther over time in appreciation dollar, instead of throwing it away on rent. The deals are out there. You are in a solid buying position and are what Sellers consider an attractive buyer (big down payment, no contingency to sell current home to buy). This will go far when it comes time to negotiate a great deal.
I'm a PV resident, Certified Palos Verdes Peninsula Specialist. and Certified Negotiator. If I can be of help to you in your search, please feel free to contact me. I'd love to help! (310-544-8453)
Low inventory is keeping price from declining at the present time. I would buy now anfd get a good buy. I work the foreclosure market in Palos Verdes and there are some great buys right now.
I really believe that now is a great opportunity to negotiate a great deal. We will soon be in the holiday season, when buyers really start to worry about selling their property. Buyers are in the drivers seat in this market, and there is less competition at this time for the really good homes. Prices have also held reasonably steady on the Palos Verdes Peninsula. Prices have decreased in the range of 8% to 15% from last year. This area is highly desireable, and demand to locate here will remain strong. Most of the areas in Southern California which have been hit harder were markets where many more buyers were using no money down variable loans to purchase their properties. This simply did not occur on the Palos Verdes Peninsula. There have been very few foreclosures here, therefore much less pressure to lower prices
If I can be of any help, I would love to hear from you!
I work with Rebecca and Mary who are both excellent Realtors. They did a fabulous job answering your question. I have attached a few stats for you to review. You might find it helpful. Good luck with your purchase.
Date 6/07 7/07 8/07 9/07 10/07 11/07 12/07 1/08 2/08 3/08 4/08 5/08 6/08 7/08 8/08
For Sale 201 210 214 227 218 192 170 201 216 235 254 258 270 276 271
Sold 63 71 57 30 31 35 23 15 25 33 43 42 39 51 29
Pended 43 38 25 19 32 17 19 11 46 46 41 41 44 26 26
Months of Inventory based on Closed Sales 3.2 3.0 3.8 7.6 7.0 5.5 7.4 13.4 8.6 7.1 5.9 6.1 6.9 5.4 9.3
Months of Inventory based on Pended Sales 4.7 5.5 8.6 11.9 6.8 11.3 8.9 18.3 4.7 5.1 6.2 6.3 6.1 10.6 10.4
Avg. Active Price 2471 2620 2486 2390 2560 2602 2694 2670 2559 2401 2443 2328 2356 2302 2330
Avg. Sld Price 1588 1722 1534 1816 1788 1547 2298 1556 1394 1608 1667 1685 1747 1496 1480
Avg. Sq. Ft. Price 611 599 592 621 648 531 663 545 516 547 570 574 568 554 545
Sold/List Diff. % 97 97 98 95 95 98 95 95 96 93 95 95 96 95 96
Sold/Orig LP Diff. % 95 95 96 94 92 95 93 92 94 90 92 92 92 94 96
Days on Market 57 49 36 48 47 55 50 51 46 62 63 67 68 52 89
Avg CDOM 54 55 36 52 46 50 44 46 53 70 88 74 79 60 96
Median Price 1412 1400 1373 1305 1360 1270 1190 1549 1300 1385 1175 1490 1250 1175 1350
*All reports are published Sep. 2008, based on data available at the end of Aug. 2008.
All reports presented are based on data supplied by the South Bay Association of Realtor or its MLS. Neither the Association nor its MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.
I have been looking at PV for five years. I had decided that prices were to start declining since 06 due to the easy financing that drives speculation. With housing going into a double dip now, there will be more price compression especially in your price range due to a number of factors. Short sales and REO is finally surfacing as banks cannot hold them anymore. There are currently over 400 houses listed for sale in PV. The financing rate is low but qualifying is much more difficult as government agency is forcing banks to hold these notes rather than selling or securitizing them. There will definitely be more price compression on the high end homes versus the low end homes when affordability and financing is available. I think your 2m homes can be bought for under 1.5 if you wait and by the watt, prices will not be going up anytime soon for at least five to ten years! A good way to appraise market value is to get the annual rental rate for the home you want to buy. If you can rent it for under 4% yield net after tax ,hoa insurance etc before mortgage interest, it is better to rent than to buy. If you get over 5% maybe worth buying.
Timing the market is always a challenging task, and this time it is the same. Many people would read a report that says "inventory levels are up, plenty to choose from" and think that they've got all the time in the world.
The truth is that in most markets about 20% of the listings are priced to sell at any given time. Of that group of homes, a very small number are really in great condition. So although inventory levels are up, the number of truly quality homes is limited.
I would approach this from the idea that you are looking for not just any home, but the right home. That means that there are very few homes that will meet your needs, so beginning your search now would probably be in your best interest.
I do not work in that area, however i would be happy to refer you to a great Realtor who knows RPV very well if you are in need to a Realtor.
Best of luck to you.
It appears that you will be getting a mortgage for this home. If the rates do increase any slight drop in price will be nullified. Ask your self this questions.
How ling do I plan on living there?
Do you plan on selling in a year or two?
How do you know when the market will turn?
What are the financial impacts of sitting on the side lines?
What are the tax implications of sitting on the sidelines?
If you think the market will drop say 5% more then you should consider making an offer at this price this way you can lock in todays low interst rates. and get a double win.
If you would like to know all the numbers related to this please let me know.
If you like to see a report showing all the sales or trends for Palos Verdes Peninsula please let me know
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