Market Conditions for December 2005

Although there are signs of slowing in certain regions, a real estate-led recession in California is unlikely, a UCLA forecast now says. The housing market is not accelerating, but is still cruising along at a quick pace, especially in the LA area. We are still a long way from seeing prices completely flatten out. I have seen condo prices continue to go up and sell in less then 30 days. Homes under a Million dollars are reacting in a similar way. For those of you lucky enough to be in a home over 1.5 Million, you probably won't be able to sell you home in less then 30 days, but hopefully in less then 90, if it is not over priced. I continue to see sellers over price homes. They are pricing them for more then any other home has sold for in their neighborhood. This is a huge mistake. I still think many sellers are not aware that the market is not the same as it was last spring, or for the last three years actually. You need to price homes close to what comparable homes have sold for, within a one mile radius, and within a 3 month period prior to putting your home on the market. That is how appraisers are pricing homes, and that is how I price homes. Interest rates are still a low 6.25% for a 30 year fixed, and no one expects a big change in this rate for a little wile. This is good news for buyers. If you are a buyer, buy this month! Homes have been on the market longer then any other time in the last 3 years and sellers are getting worried. This makes the listing price negotiable! I really hope all of you have a wonderful holiday season and a prosperous New Year. I will be celebrating the New Year in Rio, Brazil. Please contact me at anytime. My team and I would be honored to help you in anyway we can. Visit us online at either www.LARealtorToTheStars.com or www.TheMillenniumTeam.com (310) 623-1384.