The real estate market in Los Angeles will level out this year, according to the real estate team of Anselm Clinard and Alyssa Valentine who specialize in LA's east side communities.
Alyssa said she expects a natural correction. "In 2013, we saw a pretty hefty boom in some neighborhoods so you saw overbidding and crazy appraisals. We'll also see more sellers thinking it's a good time to sell and there should be a natural balance of supply and demand."
She attributes the current low inventory to homeowners who lost equity in their homes when the market dropped around 2008 and they've been content to ride out the downturn.
Anselm says the rapid increase in property values is slowing. "We're going to see the rise in property values level out from the 10 percent to 20 percent increase in 2013 and move closer to the typical three percent to five percent annual rise."
He said interest rates have been artificially low and the Fed is not subsidizing the interest rate with T-bills as much and the quantitative easing will be reduced.
"Buyers may have a bit of anxiety since interest rates are beginning to trend up, but rates remain historically low and it's still a good time to buy," says Anselm. He's seeing signs of a possible uptick in inventory. "We're starting to get calls from past clients who bought from us and are now looking to sell."
Alyssa illustrated the point with a sale made at the end of 2013. "In my first year in real estate I had a client who bought a condo and about 4 years ago I put the condo on the market and it didn't sell. Late last year, we put the condo back on and we had eight offers."
Anselm and Alyssa say regardless of the market, home buyers must always understand that they are the ones in control of the buying process.
For updates, check the website Buy in Los Angeles.com.