Sideline Cash Chasing Los Angeles Housing - Inventory Drying Up
|Thanks to http://www.deptofnumbers.com/asking-prices/california/los-angeles/|
The news is barely talking about the reverse housing bubble hitting some of America's neighborhoods. Los Angeles is one of those markets. Prices are skyrocketing in many areas as supply is almost non-existent, especially for desirable homes. When properties do become available, there are plenty of buyers waiting to pounce. Sound familiar?
We are not in a similar situation to the 2000-2007 bubble. Instead of folks looking for a home to live in, investors are clamoring for properties to rent. And because of the depressed overall market since 2008, nobody is building new single family homes. Result, lots of money chasing very little product.
What does this mean for you? If you are planning to buy a home to live in or even if you want to join the crowd going after investment properties, it will feel like 2006 in Los Angeles. You will need to beat the bushes for an acceptable house. Then you may find yourself in a bidding war. And you may be bidding against large corporations with cash.
See your mortgage broker in Los Angeles before you go shopping and get pre-approved. Here is a form you can use. This will help you even the playing field against the cash buyer. Some sellers will prefer to sell to someone who is going to occupy their home if they feel confident that you have the resources to close the deal.