Homes for Sale

Friday, November 9, 2018

Development Opportunity in Tarzana! Priced for Land Value. Over 18,000 sq/ft FLAT Lot. $799,000

 310-777-6302

Beautiful trees on property and wonderful location close to Shopping in Tarzana. 

 Development Opportunity! Priced for land value. Over 18,000 square foot FLAT lot. Current home has little or no value. Beautiful trees on property and wonderful location close to Shopping, Retail and 101 Fwy. Central South Valley location.

5969 Donna Ave
Tarzana, CA 91356

2 beds2 baths1,380 sqft


Build your large dream home and still have a huge back yard for all of your amenities. Probate Listing requiring court confirmation and overbid. Offers will not be reviewed until after November 26, 2018.



Thursday, November 8, 2018

Wilshire Comstock 15th Floor Unit for Lease - Coastal and CIty Views - Amenities Galore



Luxury at the Corner of Wilshire and Comstock in Westwood

Amazing Luxury Condo in Beautiful Westwood, Lease for just $8400



The Wilshire Corridore in Westwood has been known for luxurious condo living for a generation. The entree way is just one bit of evidence of what the residences here enjoy throughout. 



The decorating in the common areas will have you remembering world class hotels you've visited, but now it is part of daily life for you.




This unit is spacious at 1937 square feet, and the living room/dining room provides you with great bones to create a relaxing retreat or entertainment mecca.


An upgraded kitchen that will make any foodie happy, whether preparing your own meals or heating up your delivery from Spago's.




   
A full bath for the master suite and the guests enjoy a choice of two 3/4 baths. All are beautifully appointed.






Each room includes a view, and the views are the best in town.



Whether coastal towards Santa Monica....


Or overlooking the Cityscape from sunrise to sunset, the views never fail to thrill.






Lest we forget the amenities: Large pool and Jacuzzi is a great place to enjoy recreation or relaxation...




Recreation room fully outfitted, and including fitness center and sauna...

And 24/7 Valet and Security!!






General

  • Rent: $8,400
  • Status: Active
  • Type: Condo
  • MLS ID: 18-403190
  • Updated: 11/1/2018
  • Added: 7 day(s) ago
  • Viewed: 2 times

Interior

  • Rooms/Areas: Master Bedroom, Entry, Living Room
  • Appliances: Dishwasher, Dryer, Garbage Disposal, Refrigerator, Washer, Range
  • Furnishings: Unfurnished
  • Flooring: Stone Tile

Rooms

Bathrooms

  • Total Bathrooms: 3
  • Full Bathrooms: 1
  • 3/4 Bathrooms: 2

Bedrooms

  • Total Bedrooms: 3

Other Rooms

  • Laundry: Laundry Area In Unit

Additional Information

  • Shared Amenities: Controlled Access, Gym/Exercise Room, Onsite Property Management, Security, Steam Room, Passenger Elevator, Valet Parking
  • Pool Description: Association Pool
  • Spa Description: Association Spa

Parking

  • Parking Type: Community Garage, Gated Underground Parking
  • Parking: Controlled Entrance

Location

  • County: Los Angeles
  • Driving Directions: South West Corner of Wilshire and Comstock

Community

  • Assoc. Name: WILSHIRE COMSTOCK

Heating & Cooling

  • Cooling Type: Air Conditioning
  • Heating Type: Central Furnace

Structural Information

  • Architectural Style: High or Mid-Rise Condo
  • Stories/Levels: One Level
  • Stories Description: One Level
  • Square Feet: 1,937
  • Year Built: 1961

Lot Features

  • Property View: City View, Ocean View, Panoramic View
  • Lot Size (Sq. Ft.): 85,076
  • Lot Size Source: Public Records
  • Zoning: LAR5

Financial Considerations

  • Price Per Sq. Ft.: $4.34
  • Security Deposit: $16,800

Disclosures and Reports

  • Assoc. Rules: Pets Not Permitted
  • Legal Disclosures: Take Property As Is, CC and R, Homeowners Association, Pet Restrictions, Commission to Buyer Agent

Friday, November 2, 2018

New Listing - West Hollywood 1406 Sq/Ft 2/2 Condo Priced to Sell at $829,00 - Walk Score 85

1015 N Kings Rd #302, West Hollywood, CA 90069





You'll love this unit as soon as you walk in the front door. The spacious living room /dining room is a treat for the eyes. You will definitely be impressed by the great natural lighting from windows overlooking the charming street below. There is a formal entry, large living room, office nook, large dining room and even a balcony.

Located in Kingston South, this condo is all on a single-level and features 2 bedrooms and 2 full baths! The incredible West Hollywood location is just below Santa Monica Blvd, and earns a walk score of 85 and transit score of 63. You might not even need a car. 



The wonderful kitchen has a service entrance, wall oven, fresh white cabinetry, and under counter side by side washer and dryer hookups. 



 The master bedroom has an incredible walk-in closet and en-suite bath with separate shower and tub. The secondary bedroom has access to the balcony and the second bath, located in the hallway, has double sinks and a tub/shower combination. There are new wide-plank wood laminate floors throughout that add to the beauty of this space. 



What about the common area amenities. Imagine coming home to this beautiful lobby area and huge pool. Relax with friends or neighbors indoors or out.


Full Property Details for 1015 N Kings Rd #302

General

  • Price: $829,000
  • HOA FEE: $400/month
  • Status: Active
  • Type: Condo /Townhouse
  • MLS ID: 18-403064
  • Updated: 11/1/2018
  • Added: 1 day(s) ago
  • Viewed: 4 times

Interior

  • Rooms/Areas: Dining Room, Master Bedroom, Entry, Living Room, Walk-In Closet
  • Interior Features: Elevator
  • Appliances: Dishwasher, Garbage Disposal
  • Flooring: Laminated

Rooms

Bathrooms

  • Total Bathrooms: 2
  • Full Bathrooms: 2

Bedrooms

  • Total Bedrooms: 2

Other Rooms

  • Laundry: In Kitchen

Additional Information

  • Shared Amenities: Assoc Pet Rules, Controlled Access, Gated Parking, Passenger Elevator
  • Pool: Yes
  • Pool Description: Association Pool
  • Security/Safety: Community, Gated Community

Parking

  • Parking Type: Assigned, Community Garage, Gated Underground Parking, Side-by-Side Parking

Location

  • County: Los Angeles
  • Driving Directions: South of Santa Monica Blvd.

Community

  • Assoc. Name: KINGSWOOD
  • Assoc. Fees Include: Trash Paid, Water and Sewer Paid

Heating & Cooling

  • Cooling Type: Air Conditioning
  • Heating Fuel: Radiant

Structural Information

  • Architectural Style: Contemporary, Low Rise
  • Structure Type: Condominium
  • Common Walls: Attached
  • Stories/Levels: One Level
  • Stories Description: One Level
  • Square Feet: 1,406
  • Sq. Ft. Source: Public Records
  • Year Built: 1965

Unit Information

  • Units in Complex: 62

Lot Features

  • Property View: No View
  • Lot Size (Sq. Ft.): 38,900
  • Lot Size Source: Public Records
  • Zoning: WDR4*

Financial Considerations

  • Price Per Sq. Ft.: $589.62
  • Association Fee: $400
  • Assoc Fee Freq.: Monthly

Disclosures and Reports

  • Special Conditions: Standard Sale
  • Assoc. Rules: Pets Permitted, Association Pet Rules, Weight Limit
  • Legal Disclosures: Take Property As Is, CC and R, Homeowners Association, Commission to Buyer Agent




Saturday, October 13, 2018

New Listing - Home for Sale in Studio City 5/4, 3646 sqft, $1,649,000. Amazing Master Bedroom


12303 Milbank St. Studio City, CA 91604

5 beds 4 baths 3,646 sqft


House For Sale

$1,649,000

Whit Prouty - Caldwell Banker
Cal BRE#: 01303275
310-777-6302



Enter this beautiful, Studio City, traditional, 2-story home through a white picket fence and brick pathway to large, double, front doors. 
 
Inside, you'll find a vaulted and open entry with wood floors and a spacious feeling. 
 
Off to the left there is a sunken, formal living room with fireplace, and separate formal dining room. 


The kitchen has a large center island, Sub-Zero and Dacor appliances, and overlooks the breakfast area, the hardscaped and landscaped grassy back yard, and the family room with its beautiful fireplace and bar area. 




One bedroom and bath are downstairs and the remaining 4 bedrooms and 3 bathrooms are found up. The master suite has a vaulted ceiling, wood floors, its own fireplace, two walk-in closets, large spa tub and a balcony overlooking the verdant back yard. 


 The back yard has multiple outdoor living spaces with opportunities galore for entertaining.









 There is also a direct access, three-car garage. Close to schools, Ventura Blvd., Laurel Canyon and the best the Valley has to offer, welcome home. Many shops within walking distance. Walk score of 57.





More Details: 

This home is listed by Whit Prouty of Coldwell Banker

Interior

  • Rooms/Areas: Dining Room, Master Bedroom, Entry, Family Room, Living Room, Walk-In Closet
  • Number of Fireplaces: 3
  • Fireplace(s): Family Room, Living Room, Master Bedroom
  • Eating Areas: Breakfast Area, Formal Dining Room
  • Appliances: Dishwasher, Freezer, Garbage Disposal, Recirculated Exhaust Fan, Refrigerator, Range, Double Oven
  • Flooring: Carpet, Wood, Other

Rooms

Bathrooms
  • Full Bathrooms: 4
Bedrooms
  • Total Bedrooms: 5
  • Bedroom 1: Master Suite
Other Rooms
  • Laundry: In Garage

Additional Information

Exterior

  • Deck/Patio: Brick

Parking

  • Garage: Yes
  • Garage Spaces: 3
  • Parking Type: Garage Is Attached, Garage (Three Doors)
  • Parking: Direct Garage Access

School Information






Friday, August 24, 2018

Amazing Big Valley View - Home for Sale in West Hills, 3 beds 3 baths 1,815 sqft. Reduced to $767,500!











 

 

 

 

 

7212 Bouquet Dr West Hills, CA 91307, 3 beds 3 baths 1,815 sqft Reduced to $759,000


Welcome to Big Valley views from this gorgeous 3 beds and 3 baths Brock Springfield home, in an award winning school district. Open the door to a vaulted, two-story entry and formal living room with fireplace and wood floors, which flow throughout most of the home. The dining area is framed by a beautiful, large picture window looking out to the back yard. 
The kitchen is open to an eating area and family room, and has granite counters, with stainless steel appliances. Sliding glass doors lead to the entertainer's low-maintenance back yard, with built in grill station and more views of the valley below. 
Remaining downstairs, you'll find a guest bath, laundry room and direct access to the garage. All three bedrooms are conveniently located upstairs, with ample sized secondary bedrooms sharing the hall bath. The master suite has its own views, gorgeous wood floors, vaulted ceiling, walk-in closet, en-suite bath with double sinks and water closet.

Year Built 1987
Central Air
Parking - 3 spaces
Lot 34.22 acres
3 Bedrooms
Baths: 2 full, 1 half
Appliances included:
Dishwasher, Garbage disposal, Refrigerator
Fireplace
View: City, Mountain, Territorial
Attached Garage, 3 spaces
HOA Fee: $165/mo
MLS #: 18-379148
Last sold: Sep 2010 for $530,000
Inside, Laundry Area
Equipment: Range/Oven, Hood Fan, Gas Dryer Hookup, Barbeque




  

Wednesday, August 22, 2018

Los Angeles Housing Market Heading Into 2019 – More of the Same




Tight inventories, increasing demand, prices up, seller’s market

Don’t believe the scaremongering headlines you’ve seen in the real estate press lately. If you spend five minutes reading the articles that underlie a headline like “Southern California home sales crash, a warning sign to the nation,” you’ll soon see that the writers can’t support their hyperbole.

Did a little deeper and you’ll find that respected sources say that the LA market is 500,000 housing units short of what is needed, and that this is concentrated in so called “affordable” homes and apartments for rent or purchase. Of course, nobody has figured out how to create more land to build these sorely needed units. The available land is in the Inland Empire, and that is where affordable housing is being built. As fast as it is built, LA and OC residents are moving out to buy it.

Within LA County, the only way to add units is to tear down and increase density. This only happens at a snail’s pace due to limited properties being offered for sale, and layer upon layer of city, county, regional, and state hurdles to jump through after the property is acquired.

Will the exodus of residents heading to the IE and beyond (Las Vegas, Phoenix, Dallas) ever actually impact the housing prices in LA? Possibly, but so far, the lure of weather, entertainment, sports teams, and high paying jobs is keeping folks in LA. You can move to Riverside and get a lot of house for the money, but the IE is becoming the distribution capital of the US, and warehouses don’t use much labor or pay much for the labor they do use. 

Meanwhile, LA has become a huge draw for the wealthy and well paid. The entertainment, high tech, health care, and finance sectors are drawing folks from Northern California, Seattle, Hong Kong, China, Korea, India, and Europe. They are arriving with cash and are competing for available properties.

Here is one caveat. The number of new arrivals from China has dropped off. This may be due to a slightly softer Chinese economy, the tariff situation, or other issues. But word on the street says there is reduced competition in some LA markets that seems to be related to fewer mainland Chinese vying for scarce inventory. 

Are Prices Going Down in LA County?

What about the other headlines declaring that prices are easing, homes are staying on the market longer, not as many offers, more sellers cutting prices. Once again you need to dig. All four of these markers have been so high for so long that they had to come down. The amounts they are coming down is a percent or two. People are cutting the asking prices from the ridiculous to something just less ridiculous.

Where are we in the bubble? We are just now hitting prices from the 2006 highs in the “affordable” neighborhoods These are actual, not inflation adjusted prices. Some are still slightly below. Based on historical patterns we could have 40% upside left before a bubble could be declared. But if prices only continued to track inflation for the next several years, it is likely we would see 3% average increases year after year. 

What About a Recession?

What about a recession? Everyone agrees that there will be a recession at some point. In order for the housing market in LA to go lower, you need more inventory. It will not come from new units. It can only come from people moving away from the county, people doubling up, or boomers finally moving to retirement villas. If we endure a normal two quarter recession, it seems unlikely that there will be any impact on LA real estate.

What about mortgage interest rates? As long as we stay under 6% or so, there is likely to be enough elasticity in the market to absorb the hit. If we have several factors impacting all at once, then we could see a drop in prices.

For instance, imagine that the World has a year-long recession, drying up money from Asia. Maybe the US has a six-month recession, driving up the unemployment numbers to 6%. The final leg in the stool could be interest rates at 7%. In this case, you are likely to see the historical 30% drop in home prices for a year, followed by seven more years of prices going up. 

 When Should I Sell?  When Should I Buy?

When is the perfect time to sell your home? When is the perfect market to buy a new or upgraded home? It is not a good idea to try and time the market. The best thing you can do is make your decisions based on your needs. Do you need to sell your home? Call Whit Prouty and discuss current market prices. Do you need to buy a different place to handle a growing household, or just because you’d like a nicer home or a better neighborhood? Call Whit today and lay out your hopes and dreams. No better time to start looking than right now.

Call Whit Prouty at  310-777-6302

 

 


Thursday, July 26, 2018

Save $250 a Month in Expenses and Buy a Bigger Home - No Lifestyle Change Required.



When you are considering buying a home, the first consideration is affordability. As the current real estate market continues to favor sellers, prices are going up, making your ideal home more difficult to afford. You can dramatically impact the affordability by lowering your monthly expenses. We all know that might mean things like downsizing our cars or eating out less.

However, here is an amazing list of ways to shave off $10 here, $50 there, and sometimes hundreds of dollars per month. With those savings, you can quickly pay down credit cards, thereby lower monthly expenses further and improving your credit score. Check out the list.

  1. Get rid of recurring charges you don’t need anymore – Go through every bank statement and every credit card statement. Look for recurring charges that you have forgotten about from online resources, magazine drives, newspaper subscriptions, and more. We’ll assume you find one of these at $10 a month. You might find way more.
  2. Call your cable TV provider. Tell them you are considering going off grid or switching to satellite. If you have satellite, call the provider and tell them you are thinking of switching to cable. Watch the dance begin. You are very likely to end up with at least $20 or more in savings. Now call the competition with your new rate and see what they will do. You are likely to end up with the same or better rate and some kind of promotional money or free stuff for switching.
  3. Go off the grid on cable. Between Apple TV, Hulu, NetFlicks, RedBox, Amazon Prime, and other TV offers, it is hard to justify any upgrades to basic service on cable or satellite. The savings for getting off of cable could easily be $50 or more.
  4. On to your cell phone, internet, and land line providers. This gets a bit more complicated, but the cost of all of this is dropping fast. By changing providers, bundling, unbundling, and just shopping, you are very likely to end up saving another $30 a month and improving MBPS. Recently I tried to end my land line service, but the bundle cost less with it that without. 
  5. Saving on your utilities. The water company (at least in California) will be happy to help you cut down your water use. Check with your supplier to find out how to get free or reduced costs products to reduce use in bathrooms and irrigation. Then check to see what the recommended water needs are for your yard. The electric company will help you with lighting and other ways to save on electricity. LED lights are fantastic and save a huge amount of money. Switch appliances to natural gas to save even more. Saving $25 or more per month for these changes should be a cinch.
  6. Budget. Keep a penny by penny ledger of all expenses for three months. There are many online tools that can help with this process. Once you see where the money is going, you will almost certainly be able to find ways to cut that won't hurt even a little bit. We’ll put this down as $25.
  7. Shop your car insurance. We have 4 drivers on the policy, so your results may vary. Don’t forget to check Costco or AAA. It is not unusual to save $100 or more. You should also review your other insurance policies annually to make sure you have the coverage you need, and to see about savings on rates. Life insurance is another very likely savings point.
  8. Speaking of Costco. The savings by purchasing your groceries and other items at Costco are real and significant. Costco marks up all items by 15%. What they buy for $10.00, you pay only $11.50.  Most discount department stores mark up 50% to $100.  So you would pay $15.00 - $20.00. I know you have to buy huge quantities. Find nooks all over the house for storing commodities. Buy and extra freezer. A one-time small cost for huge savings. Multiple online sources report Costco as cheaper than Walmart, Sam’s, and Amazon Prime. Imagine the savings compared to your local chain market. Potential savings of at least $25 per month per person.
  9. Amazon Prime. When it isn't a Costco item, why not buy on Amazon Prime?!? Pricey toothpaste, supplements, household items and more are almost always cheaper on Amazon than at Target or CVS. And there is no freight and no auto expense. When you need more, you have a record of what you bought. Savings of another $10 per person per month.
  10. Get rid of any high interest credit card. Use the savings from these other suggestions to first pay off all credit cards with interest rates higher than your mortgage interest rate. The only good use for a credit card is to build credit. Pay them off every month. Or get an interest free credit card and transfer all balances into the interest free card. If you owe $10,000 on credit cards that charge interest and you put this on an 18 month no interest card, you’ll pay 3% for the transfer ($300) and save at least $1800 if you pay the card off in the 18 months for a savings of $100 a month. Most families will save at least $25 per month. If you owe more than that, try a credit union for a low interest loan. If you owe a lot more, consider a HELOC.
  11. Take your lunch to work. Eating out a lunch is expensive and usually not great for your waistline. A normal lunch your make at home will cost under $2.50. Savings of $100 a month and maybe 10,000 calories.
  12. We promised not to suggest changes to lifestyle, but if you want to add another huge amount of savings, get rid of one expensive, useless or worse, habit. Smoking, buying booze in bars, daily Starbucks, fast food, gambling (including lotto.)  This could be the biggest savings of all. An expense of just $10 per day is $300 a month. 

If you are getting ready to buy or sell a home or other residential real estate, Whit Prouty is ready to help you. He is one of the top Realtors in the Los Angeles area and can help you get top dollar for your current home and/or help you find the perfect new residence. Call Whit at 310-777-6302

Thursday, June 28, 2018

Amazing Remodeled Duplex in South West Los Angeles - Live in One, Rent One, or Rent Both - Reduced to $620,000


Fantastic opportunity to own this newly completed conversion from a single family home to a DUPLEX. Taken down to the studs, reconfigured, remodeled, square footage added, Ready for your new "market rent" tenants, or live in one and rent one out.




This is a wonderful trophy property. One unit has 2 beds and 2 baths, and another unit has 1 bed and 1 bath. There is a detached garage with additional space, and an attached car port. Both the front and back yard have been completely landscaped and the property is fenced and gated. Each unit has beautiful laminate flooring, stone countertops, new stainless steel appliances, custom cabinetry, recessed lighting, new heating, new double pane windows, all new drywall and electric.



This property is Turn-Key. There is a beautiful deck for entertaining in the back with banana trees, a pond and waterfall, and lush grassy area.



All of this, and you are only blocks from USC, Exposition Park, California Science Center, The Coliseum, The Sports Arena, the 110 Freeway and all of Downtown LA is just minutes from this location. Plenty of Shopping and Public Transportation within walking distance.

Facts and Features
Type - Multi Family
Year Built - 1921
Parking - 4 spaces
MLS # - 18-349520
Price/sqft  - $483
Interior Features
Bedrooms - 3
Bathrooms - 3
Heating: Wall
Floor size: 1,284 sqft
Flooring: Laminate
Building
Unit count: 2 Units
PropertyType: Residential Income Duplex
Materials
Roof: Asphalt
Dates - Built in 1921
Other Construction Features
Lot: 6,756 sqft
Parcel #: 5020007035
Community and Neighborhood
Carport, 4 spaces
ParkingGarage: Garage - 1 Car, Driveway Gate
Utilities
May 2017 for $387,000
Equipment: Range/Oven, Alarm System
PropertyCondition: 
New Construction, Updated/Remodeled
ListingArea: 
Los Angeles Southwest
Laundry: Outside
SourceLivingArea: 

Wednesday, May 30, 2018

Will $120 per Month Stop the Purchase of a $1,000,000 Home?




We have finally come to the end of the amazing and historically unique time when mortgage interest rates on 30-year fixed mortgages hovered around 4%, even dropping to under 3.5% for a while. But we are now seeing interest rates headed up. Surprising, this aberration did not result In a massive influx of new home purchases or of new home building. The reasons for this are many and varied. But while the US enjoyed these rates, the main benefactors were existing homeowners who refinanced.

Simultaneously, the lack of new residential construction and the inclination for seniors to age-in-place, created shortages in available homes and apartments to buy or rent, driving prices and rents up rapidly.

Now the pundits and some in the real estate industry are panicking over the interest rate increases, with mortgage interest in the late Spring of 2018 reaching over 4.75%. In the historical context, these rates are still very low. To give a bit of context:



From 1900 – 1967 rates were narrowly confined between 5% and 6%, except for a brief time at the end of WWII.

From 1967 – 2007 Rates ran up starting in 1967 all the way through the housing bubble bust of 2007. During this period rates were well above 6%, climbing as high as 17% in the credit crisis of 1982.



2007 – 2018. The housing bust, bank debacle, great recession combination drove mortgage interest rates to unimagined lows for over a decade. With the economy getting stronger, the Fed has seen fit to increase Fed Funds Rates and is starting to sell off assets purchased to keep the economy from crashing. The net intended affect is to send all interest rates higher to stave off potential inflation above the Fed goal of 2% annually.



Thus far in the 2018, we’ve seen rates increases that the headlines have described as the fastest increases in history. There seems to be some panic around all this. However, there is every reason to believe that rates will eventually settle into the 5%-6% range that seems to “normal” outside of extenuating circumstances. 

Will we have extenuating circumstances? Who can know? The primary driver of mortgage interest rates is bond interest rates and Federal Reserve rates. Some would argue that we have a bond bubble caused by massive borrowing in the government and public spheres. If that were to bust, we could see bond rates go much higher. Very few are expecting that in the near term.

The economy could accelerate out of control, creating inflation, and Federal Reserve efforts to slow the economy down using higher interest rates. It is hard to find anyone predicting economic growth above 4%, and most seem to agree that the economy could grow quite a bit without serious inflation.

What does all this mean to the average citizen who owns a home or is contemplating purchasing a home?

The big worry is that higher interest rates means that the cost of ownership goes up. But while every decision about purchasing can be affected by small incremental changes, the increases here would seem unlikely to do much damage in the overheated real estate market.

As noted in the headline, each increase in the interest rate of 0.25%, from say 4.5% to 4.75% will increase the payment on a $1,000,000 home by $120 a month or about 0.025% of the payment of $2450 (including property tax, insurance, etc.) Another way to look at it is that the increase of an entire 1% will increase the payment by $480.
If this buyer was maxed out on their ability to pay, either by their own budgeting or by the mortgage underwriting, they would need to drop their expectations to a home of about $900,000. For the first time homebuyer this could be an issue and could drive down prices by some amount.

However, a huge part of the market right now is all cash deals, high-roller tech employees, and homeowners looking to move up or down. The first group has high incomes, the second group has flexibility regarding down payments. Having said this it would be pollyannaish to think that a 1% or more move will have no force in home pricing.

The mitigating forces that are likely to keep home prices moving up
  • Demand is high, increasing, and likely to continue to increase.
  • Supply is low, decreasing, and unlikely to increase compared to supply
  • Current home prices have not retaken 2007 levels when adjusting for inflation.

If you’d like to review the details of those three assertions, please go here.

Assuming those three statements to be true, the upward force on prices has been at the rate of about 7% per year. A ballpark guess might be that the interest rate increases might slow that in half for a couple of years. But there’s one more mitigating force that needs to be considered.

People tend to panic, and the panic in this case would cause folks to try and get the today rate at 4.75% before it goes to 5%, and under one theory of investing, they would be correct. This theory assumes that to the extent that you wish to own, and that you intend to own for many years into the future, even if you sell and buy one or more times in your life, what you pay to make your initial purchase will not be that consequential.

Moreover, if interest rates continue up and home prices, too, you’ll be thrilled at your decision. If interest rates drop in the future, you can refinance. If home prices drop, you only lose if you sell and don’t repurchase at an equally deflated price.

Final recommendation

If you want to own your own home, or if you want to buy a different residence, don’t fret the price or the interest rate. Make the wisest decision regarding your needs, the neighborhood, and your ability to pay. The rest will sort itself out over time.

If you are ready to buy your home, whether your first or a move to a new-to-you home, Whit can help you find the perfect place. If you are ready to sell your property, Whit wrote the book on how to sell your Los Angeles Home. 310-777-6302