Predictions: Socal Real Estate Guru Predicts The Future

While there are loads of pundits and would-be crystal ball gazers looking to predict the future, there is one Californian who has spent 25 years studying our statistical tea leaves and has an excellent track record in predicting the rise and fall of California real estate. His name is Bruce Norris, and he recently made a local appearance with the following predictions.

1. The real estate market is almost at its bottom now in Southern California. After we hit bottom, the market will be flat for a few years, and then begin its next market rally. Norris predicts that the next peak in the real estate market will be in 2019.

So what does this mean for you...especially for those of us who look at real estate as a long-term investment and wealth strategy?

If you start to purchase one investment property a year (and that could be a single-family home, or 2-4 units) beginning in 2009, and continue to acquire properties for the next 8 years, your properties will rise to a new market peak in 2019.

The money you spend on your down payment will be returned in spades when you sell your properties in 2019; by choosing your properties wisely (with our help), you can select properties which either cash flow positively or break even. Your tenants will pay your mortgages for you, helping to pay down at least some of the principal over the next several years.

In 10 years, you can sell the properties and consolidate into a 1031 exchange into another real estate vehicle which may be less labor intensive and generate some nice passive income for you.

We're actively looking and selecting our potential purchases right now. If you want to do the same, let us know.

Down, But Not Out, In Beverly Hills

1Have you been crossing your fingers, hoping against hope that prices would drop in some of our ritzier L.A. neighborhoods so that you could maybe afford to buy there? Well, the wait is over for those of you who have been wanting to move on up...The L.A. Times reported today that "Westside Housing Goes South". You can hear the gasping for air as prices have started dropping in Beverly Hills (-27.5%), Culver City (-16.6%), Pacific Palisades (-15.3%), Santa Monica (-11.9%) and even Venice (-11.7%). Areas like Cheviot Hills, Beverlywood, Palms/Mar Vista, West Hollywood and Hollywood Hills are also facing declines.

While many sellers are sitting on the sidelines, saying "No thanks" to the lowering comparable sales numbers, people who must sell must still sell. And if you are selling to move up or buy elsewhere, the decreased price that you must swallow will likely translate into a decreased price that you pick up your next home for. After all, if your house is now worth $1,200,000 instead of $1,450,000 chances are good the next house you write offers on will have a similar (or even better) price cut...

Interested in comps for a particular neighborhood - send us an email with the area you want to know about, and we'll run the numbers for you. Our buyers in Los Feliz are rubbing their hands together gleefully as they watch prices plummet from $1.5M to $1.1M - that's $400,000 saved.
You know where to find us.