DIGS is the premiere luxury real estate lifestyle magazine serving the most affluent neighborhoods in the South Bay and Westside of Los Angeles, California.
Issue link: https://www.southbaydiggs.com/i/226629
WHERE IN THE H-E-"DOUBLE HOCKEY STICKS" IS THIS MARKET GOING? What's in store for 2014? Real estate has been quite a wild ride locally and abroad over the past 5 or 6 years. For those that have been watching the local real estate market for 20 to 30 years, the Kaminsky Real Estate Group has seen some of these trends before firsthand. In terms of home prices, 2006 to 2007 were the most recent peak years. Subsequently, the crash of 2008 created a sharp decline in real estate values; as prices seemed to freefall for years and many wondered if it would ever end. Fortunately, 2012 showed some signs of life — a decrease in inventory, buying trends increasing and finally some appreciation. Locally, 2013 saw a continuing of the same trend of lower inventory, increasing prices and lots of multiple offers on the homes that were available. The figures are not in yet and so many neighborhoods differ in the actual rates of appreciation, however, we have seen prices climb as high as 15-20% over the past 12-18 months. How sustainable are recent price increases and how likely are they to repeat? Personally, I don't think the market will be able to stand another year of double-digit appreciation in home prices. However, market conditions seem to indicate a continuation of price increases in 2014 based on the combination of low inventory, low interest rates and current buyer demand. With the exception of Manhattan Beach and a few neighborhoods, Inventory is actually on the rise in the South Bay. As of January of 2013, there were 976 homes for sale and as of right now there are 1407. Manhattan Beach, however, is at an all-time low with only 33 homes for sale compared to the peak of 2013 when there were 72 homes for sale. In 2008 when the market crashed, there were approximately 300 homes listed for sale. Manhattan Beach seems to have a knack for bucking trends — it appreciates sooner and when the market crashes, it crashes later. We also see that in some of the prime areas of the South Bay, including parts of Hermosa Beach, Palos Verdes and Redondo Beach. Buy or sell in 2014? Today, it's a much better environment to be a seller. There are plenty of qualified buyers including a large percentage of cash buyers right now. Not every home is selling with multiple offers, but if you are priced and marketed correctly, you should be able to sell your home at a great price and in a short amount of time. If you're a Buyer, I would give the same advice in any market: buy a home you can afford and if you own it long enough, prices historically have always increased. In fact, I have never seen net price depreciation if you held a home 10 years or more; prices always move up and down, but like the stock market, if you are in for the long-term, history shows price appreciation. The coming year will likely see higher interest rates that will erode purchasing power, although it still may end up being one of the best buying times in our lifetime. If you need an insider's view on your property or buying situation, feel free to contact Ed Kaminsky of the Kaminsky Real Estate Group on his cell at 310.427.2414 or ek@itzsold.com. MANHATTAN BEACH INVENTORY J O I N O UR N E T WO R K www.itzsold.com SOUTH BAY INVENTORY Be smart, prepare your home for sale, speak to experts! you can reach me and my team at the office: Ed Kaminsky 310.798.1277