The Real Estate market is often a topic of debate, with many speculating that it is on the verge of crashing. However, as these three case studies demonstrate, the market is far from crashing. In fact, it is thriving.
Case Study #1
Our company recently listed a single-family home in northwest Huntington Beach for $850,000. Despite its poor condition and average location, the actual market value of the house is $950,000. To our surprise, the home received 36 offers, and in the counteroffer process, it has been bid up to $1,050,000, with a 20% down payment and all contingencies removed at the time of acceptance. The buyers, a family looking to move up from a condo, are willing to put in the sweat equity to make their dream of homeownership a reality. This case study demonstrates that serious buyers are not putting their lives on hold; they are pursuing the American Dream of homeownership, in earnest.
Case Study #2
Our team recently listed a condo for sale in the over-55 community of Laguna Woods. The home is in average condition and priced at market value. Within three days, we received eight offers and the condo sold above market value. This case study demonstrates that even during uncertain times, baby boomers and seniors are moving on to the next chapter of their lives and are confident in the real estate market. They know they are selling and buying in the same place with the same conditions.
Case Study #3
One of our team’s clients owns a multi-family 4-plex in Huntington Beach. He has received phone solicitations from realtors representing investors, many saying they’re willing to pay above market value for his property. This case study demonstrates that investors have money to spend and are looking at long-term appreciation and tax benefits. They know that residential real estate has proven to be an inflation-busting safe haven over many decades, even with temporary fluctuations.
The Real Estate market is not crashing. Cycles ebb and flow, but real estate always increases over time. Artificial circumstances, such as the abnormally low-interest rates we saw last year, may have temporarily impacted the market. However, rates in the 5 to 6% range are still below the 40-year average of 7%. No one has ever lost money over an 8-year period in real estate. Therefore, it is a wise investment for those looking to secure their financial future.