It’s my opinion that Southern California residential property prices in 2012 may be like 2002 prices. Of course, each neighborhood has its own dynamic, and what the actual prices may be will vary. When you look at 2002, an ounce of gold was about $300. In the fourth quarter of 2011, it’s about $1,700. Denominated in dollars, it’s amazing that properties may nearly be priced around the same valuation as almost a decade ago. If interest rates remain low, I think it will continue to be a good time for investors to take advantage of finding homes and condos in Orange County and Los Angeles County. I believe the market for Orange County multifamily investment, and Los Angeles County apartments will remain strong with investors looking for properties with good cash flow and upside. I think the market will remain in transition in 2012 for Orange County commercial real estate, OC industrial properties, Los Angeles County commercial property, and LA County industrial real estate.
If you are an investor, I still think there is an abundance of motivated sellers. Besides what’s on the MLS, I’m happy to provide intelligence to my clients on different pocket deals and FSBO (for sale by owner) opportunities. If you’re a seller, it’s important to have an expert on your side who can market your property to its fullest potential. Should you be looking for a free consultation, please don’t hesitate to call.
Best wishes for the Holidays and New Year!
Michael Stark, Broker Realtor,