Real Estate -- Always a Hot Topic

Whether it's soaring up or settling down, residential real estate invariably is a topic of discussion almost everywhere and at any time of the day or night throughout Greater Los Angeles.

Not long ago anyone who owned  property anywhere told anyone who would listen what it was worth and how fast the price was rising. The excitement was palpable, like hordes of screaming players clustered around a hot craps table in Las Vegas.

Even as the city, state and nation work  through the excesses of that boom, residential real estate once again is the topic of conversation.

Only now it's about timing, about when to re-enter the market, when to buy.

Unfortunately, trying to time the real estate market is about as unwise and unlikely as trying to time the stock market. Most people typically act only after the herd has already started moving, thus losing any perceived advantage.

Interestingly, no one seems to have lost any measure of fundamental faith in the local housing market, and for good reason.
Yes, the economy is shakier today than yesterday and the sub-prime loan mess has yet to fully unfold.

But residential real estate is an intensely localized business.

Already there are signs that some markets are rising, others are stabilizing while some may continue to slide in both sales and prices.
Yet even in the hardest hit regions, there still are examples of homes receiving offers from multiple buyers, selling quickly, and for more than the list price.

For the majority of homes, however, there will be slower sales and more adjustment in resale prices, but probably not to the extent some of today's buyers think.

And that's what's holding up renewed home sale activity.  Just as some sellers cling to unrealistically high price expectations, too many buyers think that prices are heading deep into the cellar, despite little evidence to support that notion.

The San Fernando Valley is fairing better than other parts of the state, it has a mature economy, a limited supply of homes, and little room for new construction. The region also continues to attract newcomers from around the world — including real estate investors who see local prices as a steal compared to other international cities.

While some just sit and wait, there will always be people who do more than talk about market timing, are wise enough to see a great opportunity and act now.