Are Home Prices Going Up?

Well finally!  It seems the time that every Home Owner has been waiting for is finally here...home prices are finally going up!

One question in particular was continually asked of me, as I talked about the bidding wars that have been taking place the past 1+ year, which was: "Why aren't housing prices climbing faster, since so many Buyers are bidding on each property?"    Yes, the bidding wars really have been crazy, with some properties seeing 60+ bids on one home ... honestly, I've seen this twice in the past year! ... and so everybody kept wondering why the housing prices were not appreciating at a quicker rate.

The answer was simple:  Prices were being held down ... since the Housing Bubble crashed around 2008 ... by Appraisers.  For even when a Buyer did over-bid the Sellers asking price, an Appraiser would walk in, if the Buyer needed a Loan, and would kill the deal with the Appraisal Report which reminded the Buyer that their offer was over the current market value. 

Some Buyers were using the "offer-way-over-the-asking-price" trick to win the bidding war and then try to negotiate the price back down with the Seller once they were In Escrow, however, this only resulted in many cancelled Escrows since many Sellers got excited by the bidding war and did not want to negotiate all the way down to their original asking price, and many Buyers really didn't want to over-pay for a home, or other Buyers with little money down simply could not get the Loan at the inflated price as Appraisers simply could not find comps to justify the over-priced bid.

And just why were Appraisers not finding comps to justify offers made by Buyers?   A large factor was due to the amount of Short Sales and Foreclosures which were priced extremely low, many times because of the condition of the homes.  It was no surprise to walk into a Foreclosure or Short Sale and see handrails missing off staircases leading to the 2nd level of larger homes in great neighborhoods in Valencia or Stevenson Ranch, or to see toilets missing, cupboards yanked off the walls and removed from the homes, or pools empty and cracked or left to become thick, green, mosquito infested swamps!  Truly!  I got very used to seeing terribly "beaten up" homes for sale and offered in the "As Is" condition with no warranties and no repairs to be made.

The low asking prices of such homes held the comps for a neighborhood hostage as Appraisers took these sales prices and combined them in with other sales prices when appraising a home In Escrow.  Why would an Appraiser do such?  Because there simply weren't enough regular homes being sold to give a better valuation for the home In Escrow.

But those days seem to be finally leaving as Banks now clean up houses and actually put in new carpeting or paint or even counter-tops, and now that delinquent home sellers have more of an incentive to keep their home looking nice for the next Buyer as they can often get "Cash For Keys"* from their Bank for keeping their house in good condition.  All of this is good for keeping the neighborhood looking well maintained and it is good for the neighbors comps when selling!

As better looking inventory excites more Buyers to buy, along with the fact that there is still an EXTREMELY LOW amount of houses For Sale everywhere in the Los Angeles County, we find that these are a couple reasons why FINALLY housing prices are starting to go up!  (historic low inventory was first mentioned HERE on my Blog)  Add to these two facts the continued low, low, low interest rates and great Loan deals that can still be found by people and you come up with a real estate market that is really trying to rebound quite rapidly.

But just how long do you think these great interest rates will remain?  Or just how long will these enticing low prices be around?  Nobody knows for sure of course, so if you see a home FOR SALE on my Homes Currently For Sale Page today, and you think you might like to even consider buying it, DO NOT HESITATE to call me right away for your personal tour!  Don't delay...because tomorrow it could be In Escrow!  Yes, the real estate market IS moving along that quickly.

"Here today, gone tomorrow" is the name of this current real estate game, and I am seeing that investors and wanna-be-investors better start buying now as the price of real estate is now finally going up at a rate that is truly and remarkably visible (ie: 3 bedroom condos on Sandpiper in Newhall have risen $20,000 in asking price in the past 2 weeks;  a 2 bedroom, 1 bath, with no garage home in Friendly Valley just went into Escrow in the past 7 days at $45,000 more than previous Escrows even just 1 week ago;  and a couple Centex Ridge homes in Stevenson Ranch are asking an entire $100,000+ more than the current one home in Escrow in the same tract!)

Why not jump in and and take advantage of this quick paced real estate market and get your home SOLD today?!   

Inventory is desperately needed, so please feel free to call me today to see what your home is currently worth:
  LeeAnn Bell at 661-309-2364

Or if you are a potential Buyer, please call me today for ideas on how to win your home of choice!

* Cash For Keys:

If Foreclosure is imminent and you are thinking about selling your home via a Short Sale instead of allowing your home to go to Foreclosure, some lenders are now offering "Cash for Keys" which is where your lender will actually pay you to vacate the home in a timely fashion.  It is in the Bank's best interest to forego the cost and time involved in a Foreclosure and so when you agree to move out on a mutually agreed upon date,  and by agreeing to leave the property in a "broom swept clean"   condition, you could receive "Cash" for the keys to your home at the time you leave!  If you would like more information about this incentive, feel free to call me today to help you find out if your Bank has such a program in place for you.  You might find that a Short Sale will not only help your credit by not having a Foreclosure listed, but you may also receive this financial help for your moving costs!

Call me today:  LeeAnn Bell at 661-309-2364

Below is what one client had to say about working with me:

You handled everything to my 100% satisfaction! Anytime anyone asks, I will gladly give out your name and number and my highest regard."  R.S.,  Stevenson Ranch 

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Thinking of moving to Santa Clarita from another area?  Enjoy my photo tour of the Santa  Clarita Valley HERE

Thinking of buying an Investment Property for the very first time?  Read some thoughts to consider before purchasing, HERE

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Q:  Hey LeeAnn ... why don't you update your Blog daily or weekly like other bloggers?
A:  Because I do not want to bog-down this site with irrelevant articles that are not helpful to your understanding of the current Real Estate market.  But if there is an issue or topic that you wish I would address, please leave me a comment or email me!

(c)  2013