Wednesday, November 02, 2005

Are Prices Cooling in the Beach Cities?

The answer is maybe... However no one knows whether this is because it is November or if the market is finally cooling down to reflect the rise in interest rates and prices over the last few months.
We are certainly seeing activity slowing in some sub markets in Manhattan, Hermosa and Redondo. In Manhattan Village prices are being adjusted downward instead of upward as in the spring. Townhomes in Hermosa Beach and South Redondo seem to be at a standstill with even the lower priced properties staying on the market.
At the same time we are seeing some record high prices on prime Strand and walk street property in Manhattan and Hermosa.
The FED plans to continue hiking rates which will definitely have some effect
on our housing market. Recent stats from CAR show that the disparity between people who want to buy and those who can afford to buy keep is getting further apart.
Winter is always a slow time in real estate. It is usually a great time to buy. If the market is still slow in March then I think it will be safe to say the market has cooled. But don't expect to see a big drop in prices. Instead you will see more inventory and a leveling of prices.

No comments: