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(New page: Los Angeles Homes - Cold Weather is the greatest Time to Buy Have you ever heard it said that you might get a much better home deal if you buy before the summer months? Based on La MLS ...)
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Los Angeles Homes - Cold Weather is the greatest Time to Buy
Have you ever heard it said that you might get a much better home deal if you buy before the summer months? Based on La MLS data, this seems to be true.
Okay, you may disagree since you say it's always warm in Los Angeles. I personally disagree, I'm all incorporated at this time during my cold office complaining that my heater isn't doing it's job. It's only 55 degrees and i am still freezing to go out. I realize that's ridiculous, the rest of the country is much more miserable and cold than I am, but that's the way a spoiled Los Angeles resident like me feels. That's even the public Los Angeles consensus, and I am about to demonstrate some interesting data in regards to this.
In November of 2008, the Median Sold Price for LA county MLS properties was approximately $388,000. In December the median price went down to about $380,000. Here's the actual interesting part. From January to April of 2009 it bounced between approximately $340,000 and $355,000. This is a $48,000 price decrease from November. Full warm weather statistics start in May because the price shot up to $375,000 having a peak of approximately $380,000 in June. It started heading down once more in September once the kids returned to college, with a Median Sold Price of $360,00 and then in November the price as much as $377,000. The reason the median price didn't reach $388,000 as it was back in November of 2008 is due to the median price declining 3% over the year. For that 2008-2009 time period, it would appear that the months of January through April showed significant price decreases.
There are lots of contributing factors to those prices, such as government programs, foreclosures, the economy and inventory levels. As a general rule though, ask any seasoned Los Angeles real estate investor and they'll vouch for this cold temperature theory. Investors can't stand this little bit of good sense known, as they is going to be offering their secrets. Think of it yourself, can you rather shop in cold temperature or warm?
Years ago my husband and I were actively seeking great deals on course homes. We were looking all day in a large community of new course homes, and basically I wanted to stop since it was cold and rainy. My husband inquired about to impress keep going, as this was the optimum time to find that great deal. In summary, within two hours we had bought not one but two brand new course homes at an incredible price. One house had just fallen out of escrow the very hour we showed up and another of the houses was available but for some reason we had to pry the information out of the agent. I was at the right place at the proper time. My hubby went the next morning to accomplish the start-up paperwork on these two homes. It was a bright and sunny morning with a group of home buyers swarming the office to see if my husband would actually appear. These were told if he didn't show up they might purchase one of the homes on their own. We quite often laugh by what happened on that cold and day you need it and will always remember just how much fun it had been to find those two great real estate deals.
If serious investors realize the best deals can be had in the colder months, no perhaps you should consider buying when everyone is not? It's true there may not be as numerous Los Angeles homes to pick from within the colder season, but there still is a good chance to find that perfect home at that perfect lower price. When the warm months arrive, the marketplace becomes overly competitive with anxious buyers in the busy property season. Home deals aren't found as easily, and you will have to compete with those other 20 buyers making offers on the homes that everybody and their brother likes.
So the next time it's cold and rainy and also you really do not feel like going outdoors and battling the elements, maybe tell yourself "Hey, this is actually the best time for you to find my house and save A LOT of money. Let's go!"
