Archive for September, 2008

Financial Market Pressures = LJ Oportunity

September 17, 2008

The Chinese curse…may we live in interesting times…boy we got them now!

…and yes if no one believed it was a buyers mkt ..they are believers now!
Here’s what I’m seeing:

  • Though LJ has been somewhat of a protected enclave it is not immune from market pressures
  • In LJ, sales are down, inventories are high.
  • An article in the Sunday Union-Tribune (Sept 14, 2008) speaks to La Jolla:13.3%-30% homes sold at a loss from the previous time they were sold.
  • The bail out of Freddie and Fannie will provide a positive boost and it has lowered interest rates for conforming and jumbo conforming loans – the lowest since 2005!
  • The market is still be highly unstable spelling more buying opportunities.
  • With Lehman Bros going bankrupt, the cascading effect of the financial markets will mean fewer buyers…higher supply.
  • Now more than ever the adage is true…”buy when there is blood in the streets!”

So you are we right we are seeing significant price reductions especially as we begin to launch into the cooling off season. We are seeing homes like Sugarman -reduced its price then it flew off the shelf. Sea Ridge -price reduction -multiple offers (was at 1.4-1.6). So I can help you scout out some great deals. Start with a slightly higher price point and then wait for the reductions. Have an updated pre-approval letter in hand and be ready to pounce as soon as we see the reduction. Homes like 438 Retaheim or 5617 Bellevue might be examples of ones to watch. Two of my buyers are doing just that, waiting for price reductions then writing offers. Catching that holiday dip in prices just before sellers take them of the market for the holidays. …and then they’ll be moving in January.

That’s the latest from the RE beat!