My clients frequently ask me “how is the market, Ernie? “ It is my intent to exhibit my current answer in this newsletter-- even more clearly than I may be able to verbalize when I’m in casual conversation. As you know, I live and work in the market all day long and on weekends. It is my pleasure and responsibility to share what I observe and experience with my clientele or those with whom I would enjoy transacting business.
As December opens, I am as busy with launching properties and managing escrows as I’ve been all year long. There is no slowdown I can perceive. We do notice a buildup of new construction inventory in some specific neighborhoods and price ranges ---especially the higher value ones such as Sunset Strip, Brentwood, and Pacific Palisades.
“Ready to build” sites offered with approved plans have flooded the market within the last 12 months and we don’t see a slowdown in accumulation of those type listings. My explanation for this unusual high availability of ready-to-build sites is the acquisition rate by experienced Developers increased faster than their willingness to complete the construction phase of their development opportunities. In short, they found it and have prepared it, now you must build it.
It will be interesting to see how the uptake of those properties occurs. Will buyers be willing to purchase and then bear the responsibility of building the developer’s plan? Or will the developer eventually need to complete the construction phase and sell as a finished product?
By this time in 2017, we shall know the answer.
Enjoy a wonderful holiday season!
P.S. - Be sure to see our holiday gift guide, including my favorite watch choices, in the link below.