Housing Market Boom? LOS ANGELES (CBSLA.com) Local Home Buyers Compete With Foreign Cash

Foreign investors credited for driving the real estate market here in Southern California could be making it more difficult for local buyers – at least in the short term, according to analysts.

KNX 1070′s Bob Brill reports while prices are on the rise, experts are predicting the recent trend of all-cash sales will ultimately benefit buyers across the spectrum.

As foreclosures plunge statewide – down as much as 60 percent in January from December – median housing prices for the six-county Southland region jumped by nearly 25 percent in the same month to $321,000, according to DataQuik.

The jump in prices comes amid an influx of foreign money from Asia and the Middle East from investors who are looking for what they believe is a safer bet than the stock market.

 

One Rancho Cucamonga man told the Los Angeles Times he has placed over 200 offers on various properties, but has lost each time to cash buyers who can avoid the red tape of a traditional down payment and financing.

“[We] put in offers on a bunch of homes that we liked right from the get-go, put an offer in and then our offer gets rejected because they select an all-cash offer,” said Bill Sepe, who added that offers have typically come in around $25,000 or higher than the sales price just so the buyer can “get in and rent it out.”

Jeff Lazerson, president of MortgageGrader.com, said the trend shows what the investment world thinks of U.S. real estate.

“Chinese, Taiwanese investors, and some money coming in from the Middle East,” said Lazerson. “It’s really amazing how much is gravitating this way because they view the U.S. real estate market as just being very, very safe.”

The regions that were hit hardest by the housing downturn such as Riverside County and much of the Inland Empire could soon see a revitalized housing market amid a combination of cheap homes, investor cash and shrinking inventory, according to analysts.

Lazerson said he expects the foreign buying spree to eventually make it easier for new buyers to enter the market.

“Think about the low tide and the high tide, as property values in general go up,” Lazerson said. “There’s more people that can actually sell their property and move up or move across.”

Housing Market Boom? Local Home Buyers Compete With Foreign Cash

About Ady Simion (Realtor and Public Notary)

Ady Simion was named in the Top 1% of all agents for NRT LLC a subsidiary of Realogy that operates a variety of real estate offices under brands such as Coldwell Banker, Sotheby's International Realty, Century 21, The Corcoran Group, and the technology-based brokerages ZipRealty and Climb Real Estate. NRT has 787 offices and 47,000 sales associates. Selling and buying property can be very stressful but with the right agent it can be profitable and a fun experience. Ady is also a Notary Public and being a people person he wants to help negotiate for his clients making their transactions as smooth as possible. Ady’s goals are simple: He wants to be the best source of information on the Los Angeles area Real Estate market, as he assists clients through each transaction with care and professionalism. He is proud of his large referral base of clients who have placed their trust in him over the years. Why him, when there are so many good people out there?!?! • Sellers will have their property exposed to the largest team of sales professionals in the world by far. Coldwell Banker Agents sale more homes than anyone else. • Buyers will have the opportunity to view more properties exclusively. • And most importantly when you hire him you get a whole team working for you not just “only one person”. Ady Simion started his Professional Career as an Insurance Agent, and then mastered the Mortgage Industry focusing on helping buyers and sellers achieve their life dreams. He now is an Agent with the Largest Residential Real Estate Company in the nation and the world, Coldwell Banker, at the Pasadena office which is the leader in the areas in which he specializes. After finishing College Ady has consistently been a Top Producer in every office/business he worked at. He speaks English, Romanian and Spanish. Real Estate is constantly changing and working with an agent that has been involved in the Real Estate buying/selling process most of his life is always beneficial for clients. Call, text or e-mail him or just stop by to say Hi and ask any real estate questions you may have.

Posted on February 18, 2013, in Uncategorized. Bookmark the permalink. Leave a comment.

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