Why moving up is a good idea…

01.23.2015 | Blog

It may not look like it but people are making some money out there. Despite various challenges we face, certain areas of the economy have yielded opportunities for income growth and expansion.The Dow has cracked the 13,000 mark, airplanes are beginning to be filled, hotels are starting to get booked up and despite the plenty of obstacles out there that most of us love to focus on, one opportunity in the Real Estate market seems to be standing out in my mind. The move up.

The first important part is that in the areas of Encino, Sherman Oaks & Studio City there is a trend that smaller homes in upgraded condition seem to really be holding their value. Largely due to a lack of quality inventory and an a healthy appetite from first time home buyers with stable employment (yes people are working), homes in good condition that have good layouts, upgraded kitchens and bathrooms and open floor plans are commanding a premium.

The second part of the argument is a combination of factors that may wind up providing one of the best housing opportunities in years.

Interest rates are at their all-time low and homes priced $1,000,000 and up seem to be slightly more challenged by the current Real Estate cycle. The business owners and self-employed that enjoyed much success between 2000 and 2006 have been faced with a reduction in income and some have even lost their jobs. Inventory in this price range is somewhat healthier and it begs the question:

If you could move your family into a larger home, purchase it at a reduced price and lock in the lowest interest rates ever does that sound like a long term plan for success?

It does to me.