LOS ANGELES IS NOW A BUYER’S MARKET!
Below are the two properties Brad and Ryan discuss in the video above, on which they represented the buyer. Both properties are directly comparable in bedroom and bathroom count, living area, lot size, and are located about a quarter mile apart in red hot Atwater Village. 3437 Glenhurst received 21 offers and sold for $435,000 OVER asking on March 6th. 3343 Atwater received 2 offers and is closing for about asking.
This is, of course, a direct result of the Shelter-in-Place order, which has halted the flow of commerce…for now. The true impact on the real estate market will depend on how long the Shelter-in-Place order lasts. Clearly, the longer commerce is suspended, the greater the corresponding negative impact there will be on the real estate market.
That being said, if the order is lifted by early summer, we expect the real estate market to rebound to pre-pandemic levels, as the fundamentals of the Los Angeles real estate market have not changed. Historically low interest rates, coupled with low inventory, will lead us back into bidding war territory in the greater Los Angeles area.
AS MENTIONED IN OUR VIDEO LAST MONTH, we do not expect you to be making big decisions about real estate right now, and while this is still the case, it is also important to note that for those buyers who had trouble competing against multiple offers in the first quarter of 2020, now is the time to secure a great property without a protracted bidding war. Even though demand has certainly been affected by COVID-19, supply is still extremely limited, and homebuyers should take advantage of this opportunity to buy premium real estate in a more “normalized” market.
If you were in the market before the COVID-19 pandemic, we encourage you to keep looking. There is major opportunity out there, and we are here to make it happen for you.
With that, we hope you are safe, healthy, and staying positive. We will get through this together!