I posted this article in March of 2006 in an ENewsletter I send out to clients.  I found it interesting in how it still relates somewhat to today’s market(albeit a year and a half later).  I have added slight revisions in blue.

I’m asked a lot if whether or not the market is slowing down, prices declining, market bust in the near future? I say no(except for prices declining..but we’ll talk about that at the end).

The sense of market slow-down is literally just a market correction. And this is true in today’s market. Interest rates are still relatively low, money is cheap thus allowing for ”qualified” buyers to purchase(I’ll touch upon “qualified as well).  Buyer’s are making smarter decisions about the price they pay. So, seller’s are experiencing their homes sitting on the market a little longer than normal-forcing price adjustments usually in the Buyer’s favor.

But is it a buyer’s market? I say no…..not to the fullest extent, yet. And it’s not really a seller’s market like we’ve experienced in the past.  Seller’s nonetheless are still in the driving seat-perhaps with a slight push on the brake peddle however.

What is true in any market is still true today. And that is homes that are done, done, done and priced right are still flying off the market. And let’s not forget the other contributing factor(regardless of the condition of the property) to a fast sale-location, location, location!
 

As for pricing declining, my nose would grow larger than it already is if I were to tell you that we were not seeing prices declining.  We are, and that creates a healthy opportunity for buyer’s. But in the Los Angeles area and entire westside, they are not declining at alarming rates.  If a property has the key ingredients(as mentioned above) to attract buyers, once it hits a certain threshold, it is often scooped up by buyers waiting in the wings, thus pushing the price back up.  Supply & demand folks!

The LA market is a good market!