ARCADIA, Calif.—With all the influence the real estate market has on the total economy it seemed a good idea to talk with a professional in the field to see how the market is changing at this time. On Aug. 20 we asked Gary Lorenzini, Coldwell Banker Residential Brokerage , Arcadia, to give us an update.
“The market in this area is very, very good right now. I think most buyers are sensing we’ve reached the bottom of the bottom and they’re starting to come back into the market and buying. We’re seeing a lot of multiple offer situations and there’s just a tremendous amount of demand right now,” Lorenzini told us. “There’s a lot more demand. At our open houses on the weekends, we’re seeing a tremendous amount of traffic come through. And so far it’s been good.”
As far as which areas of the market are improving and which are not, he said that the market is most active in the entry level, up to around $600,000. “Generally speaking, whenever we list anything between $0 and $600,000, we’re seeing a lot of interest, multiple offers. We’ve sold a number of properties above the asking price and we did not experience that a year ago.”
The reason, he thinks, is mostly the buyer’s perception that has changed as they hear more positive news in the media. And as they feel the market is starting to improve, they realize that this is a good time to buy, while interest rates are low and the prices are also low.
To demonstrate how much the market has improved he explains that before there were not multiple offers for the same house, but now, on the last five houses they’ve put on the market, they’ve had from two to 20 offers on those properties, most of which have gone for over the asking price.
Lorenzini has properties that range in price from $150,000 to $6 million; however, the activity is in the lower-end. The high-end is still struggling.
Comparing the price trends in different areas he tells us, “The market in the Arcadia area — actually the San Gabriel Valley — is very, very active in our price ranges. As you go into the Inland Empire, the market out there is extremely good but it’s only because the prices are so depressed. Just to give an example, we sold a house in Fontana that we just closed escrow on. I think it sold for $56,000. Several years ago that house sold for $360,000. So it just gives an example of how much prices out in that area have declined. In San Gabriel Valley, our prices have held very well throughout this recessionary period.”
In Arcadia and its vicinity, for example, Lorenzini says, “The ones selling the best are the ones priced under $600,000. I’ve had a tremendous amount of interest in my project on California [Lofts]. We have 16 townhomes and we’ve been advertising in the Epoch Times (Chinese version). Pretty much all the buyers who come to our open house are a result of the ad from the Epoch Times and the response has been tremendous. I’ve done a lot of advertising in a lot of different papers but I’ve never received this kind of response. I’m very impressed.”
One of the drawing points of this project, he says, is the developer, Mur-Sol, with whom he’s been working for 30 years. Mur-Sol’s focus is upscale custom homes rather than townhomes, Planned Unit Developments, or low-income housing. Lorenzini continues, “So whenever they do this kind of a project, the quality, the workmanship, and the materials that go into their product are generally far superior to anything else available on the market.”
The keys to his success, he says, are “Being knowledgeable about the product, and, more importantly, trying to be very helpful to my clients.”
“The market in this area is very, very good right now. I think most buyers are sensing we’ve reached the bottom of the bottom and they’re starting to come back into the market and buying. We’re seeing a lot of multiple offer situations and there’s just a tremendous amount of demand right now,” Lorenzini told us. “There’s a lot more demand. At our open houses on the weekends, we’re seeing a tremendous amount of traffic come through. And so far it’s been good.”
As far as which areas of the market are improving and which are not, he said that the market is most active in the entry level, up to around $600,000. “Generally speaking, whenever we list anything between $0 and $600,000, we’re seeing a lot of interest, multiple offers. We’ve sold a number of properties above the asking price and we did not experience that a year ago.”
The reason, he thinks, is mostly the buyer’s perception that has changed as they hear more positive news in the media. And as they feel the market is starting to improve, they realize that this is a good time to buy, while interest rates are low and the prices are also low.
To demonstrate how much the market has improved he explains that before there were not multiple offers for the same house, but now, on the last five houses they’ve put on the market, they’ve had from two to 20 offers on those properties, most of which have gone for over the asking price.
Lorenzini has properties that range in price from $150,000 to $6 million; however, the activity is in the lower-end. The high-end is still struggling.
Comparing the price trends in different areas he tells us, “The market in the Arcadia area — actually the San Gabriel Valley — is very, very active in our price ranges. As you go into the Inland Empire, the market out there is extremely good but it’s only because the prices are so depressed. Just to give an example, we sold a house in Fontana that we just closed escrow on. I think it sold for $56,000. Several years ago that house sold for $360,000. So it just gives an example of how much prices out in that area have declined. In San Gabriel Valley, our prices have held very well throughout this recessionary period.”
In Arcadia and its vicinity, for example, Lorenzini says, “The ones selling the best are the ones priced under $600,000. I’ve had a tremendous amount of interest in my project on California [Lofts]. We have 16 townhomes and we’ve been advertising in the Epoch Times (Chinese version). Pretty much all the buyers who come to our open house are a result of the ad from the Epoch Times and the response has been tremendous. I’ve done a lot of advertising in a lot of different papers but I’ve never received this kind of response. I’m very impressed.”
One of the drawing points of this project, he says, is the developer, Mur-Sol, with whom he’s been working for 30 years. Mur-Sol’s focus is upscale custom homes rather than townhomes, Planned Unit Developments, or low-income housing. Lorenzini continues, “So whenever they do this kind of a project, the quality, the workmanship, and the materials that go into their product are generally far superior to anything else available on the market.”
The keys to his success, he says, are “Being knowledgeable about the product, and, more importantly, trying to be very helpful to my clients.”
