Reasons to Buy Real Estate Now

The “Three Reasons” below is a repost from the pages of REALTOR Magazine online, but essentially is what I’ve been saying for weeks, nay months!

The tax credits expired and everyone climbed under a rock! For a measly $8 to $18K in conditional tax credits buyers were jumping through hoops like they were handing out bars of gold. Do the math on 4% interest over 30 years on a distressed property that you bought for 10% below market. . .

So STOP listening to all the fearmongers and their media puppets screaming that the sky is falling. They’ve all got agendas. Be smart, do your homework and if it makes sense buy a home.

As a point of reference, interest rates on 30-year fixed conventional mortgages went to double digits in late 1978 and peaked at nearly 19% in late 1981. It wasn’t until early 1986 that rates dipped (briefly) below 10% again and were not permanently in single numbers until late 1990. In November of last year (2009) they were right at or just below 5%.

Three Reasons to Buy a Home Now

Stocks are up 50 percent from the March 2009 bottom. Some commodities have risen dramatically. The only asset class left in the cellar is real estate, says Michael Murphy, editor of the New World Investor stock newsletter.

As a result, Murphy is advising investors to buy now for these three reasons:

Desperate sellers: Both home owners and lenders are eager to unload a flood of foreclosed and underwater properties. Buyers with the patience to push through these complex deals can save a bundle.

Little competition: Because most people don’t have what it takes to negotiate their way through short sales and REOs, patient investors are winners.

Low rates: Mortgage rates are at their lowest level in 40 years. If you believe inflation is inevitable, lock in now.

Source: MarketWatch, Michael Murphy (08/19/2010)

Posted at REALTOR Magazine online

For more information regarding this post or other real estate information visit LARealEstateINFO.net or contact Robert Dixon at RE/MAX Palos Verdes Realty, Telephone (310) 703-1848 or email info@robertdixon.net. Content of this or any other post is presumed to be accurate but not guaranteed. DRE License #01828273

Serving the Palos Verdes Peninsula & South Bay Beach Cities, Hollywood and the Hollywood Hills, Silver Lake, Echo Park – Angelino Heights, Los Feliz, the Greater Los Angeles area and Palm Springs.

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SOLD June, Palos Verdes – South Bay Beach Cities

SOLD during the month of JUNE 2010

61 The number of residential properties sold on the Palos Verdes Peninsula, 90274 and 90275.

120 The number of residential properties sold in the South Bay Beach Cities, El Segundo, Manhattan Beach, Hermosa Beach, Redondo and Torrance Beach.

Residential properties SOLD during the month of MAY 2010
 
For more information regarding this post or other real estate information contact Robert Dixon at RE/MAX Palos Verdes Realty (310) 703-1848 or email info@robertdixon.net. Content of this or any other post is presumed to be accurate but not guaranteed.

South Bay Home Sales/Prices April 2009 to 2010

No doubt it is difficult to be too serious about the percentage of loss/gain when looking at such a limited number of sales (per city), as one high or low number can dramatically influence the overall. The devil, as they say is in the details…

Below are numbers (from DataQuick) on April 2010 home sales as compared to April 2009. Data includes homes sold and the percentage of change based on median price 2009 vs 2010. Unfortunately there were no numbers in the report for Palos Verdes Estates, Rolling Hills or Rolling Hills Estates.

Entire report at DQNews – California Home Sale Price Medians by County and City, Home Sales Recorded in April 2010

Los Angeles County  6,334  +9.00%

El Segundo  15  +12.46%
Gardena  31  +10.29%
Harbor City  18  +21.20%
Hawthorne  37  +15.24%
Hermosa Bch  18  -26.54%
Lomita  11  -3.87%
Manhattan Bch  40  +11.72%
Rancho PV  39  +4.38%
Redondo Bch  77  +1.98%
Torrance  106  +18.41%

For more information regarding this post or other real estate information contact Robert Dixon at RE/MAX Palos Verdes Realty (310) 703-1848 or email info@robertdixon.net. Content of this or any other post is presumed to be accurate but not guaranteed.

SOLD in May, Palos Verdes – South Bay Beach Cities

During the month of May 2010
76  The number of residential properties sold on the Palos Verdes Peninsula, 90274 and 90275.
156  The number of residential properties sold in the South Bay Beach Cities, El Segundo, Manhattan Beach, Hermosa Beach, Redondo and Torrance Beach.