Investors have become a significant factor in the current market environment. Investors generally have fewer contingencies and shorter time periods for processing the escrow. Therefore, they have traditionally closed escrows with fewer complications though having generally paid less for the property.
The fuel for this steady recovery has been continued artificially low interest rates which has made purchases more affordable for everyone, combined with a lag in the homes being made available for sale at a rate equal to the steady and strong demand.
As of May 1st, 2013, there is approximately a one-year inventory of homes available above the $5million level. Conversely, it would only take 2.5 months to sell all of the homes below that level. As long as the inventory level is below 5 months, it is generally considered to be a market that favors sellers.
There continues to be much interest in the local real estate leasing market. Owners who choose not to sell their current property for various reasons have asked what is involved and how the process works if they decide to lease.
Real estate prices in the Palisades have continued a steady and much stronger increase than could reasonably have been expected.
Empty Nesters and retirees have the choice to stay in an oversized home, or perhaps move to a more updated home and face the tax implications of that.
As we begin the year 2012, the number of homes available for sale in Pacific Palisades is quite low. There are only 70 homes on the market, which is 22 percent less supply than at the beginning of last year.
The answers to these questions have been relatively easy to give for the last year or so. Today, however, this is not at all an easy subject to fully understand.
