Real Estate Agent Answers Questions About Market Frenzy – NBC, Los Angeles

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Property prices are on the rise, mainly due to the pandemic.

There is high demand, but very low inventory, and this creates a frenzy. Kim Baldonado spoke to a real estate agent and asked her for some advice.

Analea Perez is buying a home for the first time.

“The ads that I saw will be published, the ones that I liked, I checked them in a couple of days and they were pending consideration,” she said.

In many parts of the country, including southern California, the real estate market is wild.

Leah Guerra is a Los Angeles-based real estate agent. We asked her how to deal with the current madness.

First, why is the demand so high?

Much of the consumer demand is driven by historically low interest rates, so buying is generally cheaper than it used to be. While prices go up, your monthly payments are becoming more affordable.

Why are there so few affordable homes?

There are simply not enough sellers, in part because there are fears that they have nowhere to go.

The last time we saw a similar surge in the housing market, it plummeted, causing massive foreclosures, but Guerra says that won’t happen this time.

“On the eve of the big recession, supply was much greater than demand, and lending requirements were not as strict as they are now. Ironically, almost every client of mine, no matter how long they have been in business or how many assets they have, the county’s loan approval process is really strict and you haven’t had it before. “

Guerra advises buyers to be prepared to quickly make an offer by exploring the area and getting pre-insurance for a loan, as prior approval is no longer enough.

“By the time you go to see the house, if you’re not sure, someone has already made an offer and it will disappear within a few days,” Guerra added.

When making an offer, consider eliminating or escalating contingencies.

“I never advise brandishing verification contingencies, you have to know what you are getting into, but by all means you need to cut it down because the salesperson wants to know this deal is happening. They have eight options to choose from, ”she said.

What about waiting for prices to fall?

It probably won’t. What is likely to happen is that the rise in prices will slow down.

While prices may not rise as quickly, interest rates are expected to rise, so a willingness to act quickly and flexibility will help.

“At first I thought I needed something very specific, and when I saw how the market was developing, I had to adapt and be flexible,” Perez said.

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