I have to admit that I really like getting Digs Magazine. What’s today’s browse brought to my attention was that there is ample supply in the South Bay.
Let’s forget El Segundo, because it is and will always be an outlier. If you are looking at spending $1.5 or more you have a lot of options and living next to an airport is a deal breaker for most sensible people.
But as we look at MB, Hermosa, PV we see that there are TONS of beautiful trophy houses. Thanks Digs for ruining the con for so many locally based realtors that specialize in the little towns of the south bay. Now your client knows that there are options just a mile in either direction. If we review our econ-101 supply and demand lesson we know that to meet equilibrium either supply or price has to come down. Now that’s we’ve seen the cost of borrowing increase 40 basis points in a week with the potential (90% odds) of a rate increase in a couple weeks what’s gonna happen?
I know that smart money will not get sucked into the “better buy now” rhetoric. When that much money is on the line, the prudent thing to do is nothing.