Southern California housing market continues to improve as investors dominate the market.
According to QuickData, MDA home sales last month were the highest in Southern California since 2007. Of the 16,000 homes that were sold in February, 32% were purchased by investors. In the past year alone the home prices have increased almost 21% in the counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura. The median home price in Los Angeles County is currently $320,000. As prices increase many homeowners that are underwater are finding out that they are in a better position to sell. Construction companies are also seeing a positive effect, and as a result permits for future constructions have also increased to 4.6% since 2008.
This time around investors are not only purchasing homes to flip but also to rent. Many of these investors are purchasing homes in communities that were affected when the market bubble burst and are now being sold at a higher price or rented out.
Unfortunately not everyone is happy with investors taking over the market. Even though interest rates are at an all time low, many regular buyers are having a hard time finding properties. That is because investors are on a purchase frenzy not giving potential homeowners the opportunity to purchase without them ending up in bidding war with 10 other buyers. The housing market is not where would like it to be, but hopefully the next quarter will be better.
Below you will find some helpful tips to keep in mind when submitting an offer.
1. Hire a local agent who is experienced and reliable.
2. Make sure your pre-approval and proof of funds are current.
3. Know exactly how much you are able to afford.
4. Write a clean offer (dot your “i”s and cross your “t”s)
5. Meet the terms as quickly as possible
6. Make sure your agent follows up on the status of your offer.
Jessica Tovar is one of JohnHart Real Estate's esteemed Agent Liaisons. In this role she is responsible for the maintenance of relationships with internal and external agents. Having worked on nearly 500 transactions in this capacity she is truly an expert, and has a vast knowledge of all things real estate.
