At first glance it may seem that the market has hit it’s peek!  On average home values in Downey and surrounding areas of Los Angeles tend to drop slightly in the 4th quarter of each year.  The average sales price last month (Oct 2017) came in at $545,381.  The highest monthly sales price for 2017 was $565,960 and that was for the month of June.  Home values on average have been going up every year consistently about 7%-8% which is a great sign of strength in the market.  That coupled with the very low interest rates are the reason for the strong market we’ve been in the past few years.

So yes, the market is displaying some signs of weakness here in the 4th quarter locally but it is not uncommon to see lower prices in the 4th quarter of each year.  If you’re a buyer, this should open your eyes tremendously.  Just like in the stock market, you want to buy when you see any kind of dip in value.  A smart buyer always looks for that moment in time where they can have the best entry.  Another way to look at it is when you buy something on sale.  You purchase a product at a discounted price and you save, it’s what everyone wants to do.  Sellers during this time are serious about selling if you see their home on the market.  Most likely if you put an offer on their home and you are a strong qualified buyer, you can be sure that your offer will be reviewed and considered at an aggressive price.

Be sure to check out our last blog post where we explain in bullet point for why the “Holiday” season is a great time to buy a home.  https://motherandsonrealestate.com/blog/holidays/