Wednesday, October 25, 2006

Real Estate News for Wednesday, October 25th, 2006

Selling a Slice of Luxury. It is almost too easy to be charmed by the latest trend in time shares, what is called fractional real estate. A high-end spin on the traditional time share, fractionals typically entitle users to multiple weeks’ stay, and the developments themselves have decidedly luxury touches, with upmarket appliances, finishes and linens, as well as amenities like spas. In short, developers say, it is a way to get access to a million dollar-plus property for much less than the full price of ownership. With all the variety on the market today, buying would appear to be a snap. But how these units stand up in the resale market remains to be seen. Source.

Experts call current real estate trends normal. Urge calm as home sales and price appreciation fall. The valley’s recent real estate boom — and the current correction in sales counts and appreciation rates — have not only altered buyers’ and sellers' expectations. They've also got the experts wondering what "normal" should be these days. "It's been so long since we’ve seen a normal market, we've forgotten what it looks like," said Pat Veling, real estate analyst and president of the Brea-based consulting firm Real Data Strategies. Annual home price appreciation is expected to dip to single digits this year, considerably down from as high as 37 percent in 2004. Source.

How to find a real estate bargain. Buyers now have luxury of choice. Everybody wants a bargain. Last year, good real estate deals were few and far between. This was due to the fact that inventories of homes for sale were at record low levels. And, there was an abundance of buyers, all looking for the same thing. Today in most areas, buyers have the luxury of choice. So, there's less of a chance you'll overpay because you have to outbid another buyer. However, even though there is a lot to choose from, this doesn't mean that it will be easier to buy a property at a bargain price. One reason is that most sellers aren't desperate to sell. Just because the market has changed doesn't mean that sellers are slashing their prices dramatically. Many listings that have price reductions were overpriced to begin with.
Another factor is that there is usually little consistency in pricing. Some listings are well-priced, others are overpriced, and then there is the occasional listing that is actually priced below market value. Another complicating factor is variability. Unless you're looking at listings in a single tract development, where each house is a cookie cutter of the others, you'll find disparities in age, condition, size and amenities. Each of these variables has an affect on market value. Source.

~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
Cell: 909-446-2666
Toll-Free: 1-877-TINAJAN
tina.jan@coldwellbanker.com
www.tinajan.com

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