To say that our westside real estate market has been influenced by the significant recent financial "events" which include tightening credit criteria, liquidity constraints, and discouraging national headlines relative to residential real estate has created buyer uncertainty, would be an understatement. The " confidence crisis" has permeated the minds of even the most wealthy buyers and sellers.
The cautious buyers of westside real estate and Los Angeles real estate in general are concerned about the local and national economy; the stability of their jobs; the value and safety of their investment; and how to protect their real estate investments over the next year. Short term thinking and a general hysteria has become common place.
Let me say this, WE ARE NOT in a depression in Los Angeles or anywhere else! During the depression that news likes to refer to, 50% of the homes in the US went into foreclosure and 25% of the nation was unemployed! Compare that to today where TWO and ONE HALF percent (2.5%) of the nation's homes are in foreclosure and unemployment is about 7%. While these numbers are indicating hard times, it is important to recognize that this is the down part of a cycle, but one that we will get through.
Those that are astute will see this as an opportunity that only comes once or maybe twice in a lifetime to buy real estate that will continue to increase in value as it has through history. We are making a new high low, ready to move up as the economy improves. As Franklin D. Roosevelt said:
"REAL ESTATE CANNOT BE LOST OR STOLEN, NOR CAN IT BE CARRIED AWAY. PURCHASED WITH COMMON SENSE, PAID FOR IN FULL, AND MANAGED WITH REASONABLE CARE, IT IS ABOUT THE SAFEST INVESTMENT IN THE WORLD."
