Cutting Prices in a Down Market
Right now is either a great time to buy a home or a terrible time, depending on who you are. It’s great for home buyers because prices are dropping. It’s not a great time for sellers because they have to lower prices to meet a lowering demand. For example, fashion designer, Yael Aflalo, recently lowered the asking price for her Hollywood Hills home by over a million dollars. The old Hollywood estate, which formerly belonged to Hollywood legend John Barrymore, has been reduced from $4.95 million to $3.95 million since the home was first listed.
You would think that the low prices would bring in new buyers, but people are being continually drummed with the idea that the housing market is disastrous, so buyers are understandably timid. Of course, worry about the market isn’t the only problem, as people are facing tough economic times and may not be able to afford a home in the Hollywood Hills, even with the lower asking price. Though interest rates are low, the down payment may have to be higher as a form of insurance against default not covered by interest.
However, if you’re in reasonable financial shape there’s no reason to feel timidity about the market. Nor should you think that prices are going to drop and drop forever. The Southern California market was hit harder and faster than other parts of the country. So when you hear about housing markets going through difficulty in other parts of the country, it’s that they haven’t yet hit California levels. But because California dropped first, it will also be the first to ascend – and there are signs that the housing crisis is abating in Southern California, as sales trickle upward.
In short, don’t be afraid of market conditions in other parts of the country and don’t expect prices to drop indefinitely. If you are interested in buying a Hollywood Hills home, now is actually a very good time.
About Susan Andrews:
Susan Andrews is a top producing real estate agent at prestigious Beverly Hills real estate firm, Hilton & Hyland. She specializes in Hollywood Hills, West Hollywood and Los Feliz real estate. Susan can be contacted at 323.829.8811 or by e-mail regarding her properties.
