Los Angeles, Ca (PRWEB) August 17, 2012
After strong spring and summer sales, the Los Angeles real estate market is looking to cool down this fall. The experts at Red Blue Realty explain how certain seasons are better for some buyers than others.
When is the best time of year to buy Los Angeles real estate? While it is true that Los Angeles homes for sale tend to do very well in the spring and summer -- this year being no exception -- that does not necessarily mean that those seasons are best for everyone. It ultimately depends on the buyer.
Regular Home Buyers:
Regular home buyers are those whose primary concern is not the investment value of a property. A young couple looking for their first home so that they can raise a family is an example of a regular home buyer. While the value of the home as an investment may still be an important concern, it is a regular home buyer’s secondary or tertiary reason for owning a home.
For regular home buyers, spring and summer tend to be the most popular seasons for buying a home. There are, after all, many advantages to buying real estate during these seasons; the sky is crystal blue, the weather is mild, the flowers are blooming, and it is the start of a new year -- it’s a chance to start fresh.
But going beyond this temperate and comfortable buying experience, there are also real economic advantages to buying real estate in the spring or summer. During these seasons there are usually many listings available, which means many more options for those who are searching for the perfect home. There are, however, some economic trade-offs to consider as well.
For example, because there is such high demand during the spring and summer, the average price of real estate tends to be higher than in the fall or winter. Nevertheless, this downside does not seem to deter most regular home buyers from finding their dream home during the spring or summer.
Investors, in contrast to regular home buyers, are primarily concerned with achieving a high return on their real estate investment. By buying low and selling high, investors can maximize their potential return. Investors can, therefore, benefit during the fall and winter seasons when there is less demand or, in other words, less competition.
By observing the chart above, it is apparent that general interest in real estate drops dramatically around the end of July and then rebounds again after the New Year. One possible explanation for this phenomenon is that searching for real estate during the cold and dreary months is, when compared to spring or summer, an unpleasant experience. Another possibility is that the winter, family-oriented holidays can make it difficult to relocate.
Whatever the cause, investors see the lack of interest as an opportunity. It's quite common that the Los Angeles homes for sale during the fall and winter had failed to sell in the spring or summer. And the longer that a home stays on the market, the less negotiating power its seller has. This extra negotiation leverage coupled with low buyer competition in the market allows investors to find that perfect deal -- to buy low, and sell high.
Ultimately though, with interest rates as low as they are, there is no bad time of the year to buy Los Angeles Real Estate. Whether one is a regular home buyer or an investor, a great Los Angeles real estate agent can make all the difference -- contact Christopher Rosiak at Red Blue Realty today to learn more!
Phone Number: 1-(855) 66-RBREALTY or 1-(855) 667-2732
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