You may not know this, but we are entering into what may be the best time to buy property in the South Bay in 2014. Interest rates have stayed low, allowing more people than anticipated to participate in the real estate market out here in the Beach Cities of Hermosa Beach, Redondo Beach, and Manhattan Beach. It was predicted by major banking institutions that rates would probably go up to 5% in 2014, but that just hasn’t happened. In addition to the current historically low interest rates, the real estate market in the South Bay is making a subtle shift from a seller’s market to a buyer’s market, and I’ll tell you why.
Many aspiring South Bay buyers waited for a market in their favor, and now they are finally going to be rewarded for their patience. First, home value appreciation in the South Bay has slowed down. It was rising at a very fast pace earlier in 2014 (in fact, in Manhattan Beach alone general property values went up 16% from 2013 to 2014), but that’s slowing to a more reasonable pace now. New listing prices are staying lower, meaning that buyers have a chance to come into some really good deals on Manhattan Beach properties. In fact, in July 2014, home values didn’t rise for the first time in five months. Secondly, this is no longer a seller’s market, and you’re a buyer. That’s excellent news. It means that you now have advantages you didn’t six months ago, such as a larger selection of properties listed at lower prices.
These two trends mean a major buying force out there this fall taking advantage of the conditions while interest rates remain under 5%. Will you be among those that uses this opportunity to invest in South Bay property? As September and October 2014 creep by, you’ll notice home values slowing even more. Now is definitely the time to buy in the South Bay.