Bruce Norris is generally regarded as one of the best California residential real estate forecasters. Not only is he self-taught in real estate economics and data, but he is also a real estate investor himself. He is a great source because he depends on his own predictions to correctly make decisions for his business. For further background, check out a previous blog post I wrote on Bruce Norris predictions here. Bruce Norris Event This last weekend I attended Bruce’s event, “California Real Estate: On Borrowed Time” in Riverside. Upon arrival we received a 250-page book with hundreds of different charts, illustrating that he really does his homework. These charts provided data on various topics such as
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Month: January 2019
During my time in real estate, I have learned certain clues give me a fast and fairly accurate analysis on the market. One of those clues is homes resold in a short period of time. I am not talking about flips where an investor adds value to a home, but rather resales where a home owner has done absolutely nothing. In the hot market of 2012-2015 I saw short term resales (12-24 months later) turn breathtaking price gains all with the owner barely lifting a finger. In a flat market, you will see little to no price gains on short term resales. And obviously, struggling markets on the decline will see short term resales go for
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As the South Bay home market begins to wake from its holiday slumber, I went back to study this normally slow season. From my research, I found an unusually high amount of sales in the luxury home market. In only 42 days, from December 1st to January 11th, the luxury home market had some MAJOR sales! Hermosa Beach Lot Sale 1918 The Strand Asking Price: $7,200,000 2,547 sq. ft., 2,382 sq. ft. lot Sold for $6,800,000 Some might believe this sale will be the benchmark for land value on The Strand in 2019. With its bullseye location in the middle of Hermosa, many buyers will believe that similar lots to the less desirable south will sell
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The Interest Rate Effect Interest rates are the most important topic facing the residential real estate market in 2019. This past year, The Fed allowed interest rates to rise too fast in hopes of slowing the economy. As a result, the real estate market has taken a hit. Although The Fed will be more cautious this year, Jerome Powell and his directors will raise the federal funds rate one to two additional times. The stock market will close higher in 2019 and in turn, bond market yields will rise. As a result, 30-year mortgage rates will climb to 5 percent in the second half of the year for the first time since 2011. This will hurt
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Happy New Year! As we begin 2019, I am starting to make my annual predictions blog for the year. Until, then, I wanted to explore a few topics relevant to the New Year. Real Estate in January In my opinion, January is always a funky month in residential real estate as buyers and sellers are returning from the holidays and vacations. I believe there are great opportunities for both sides during this time, you just have to play your cards right. Buyers For buyers, January is a great month to score a deal. Here are a few reasons… Most buyers are focused on New Year’s resolutions and returning from vacation. Competition is still very low until
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