Home Inventory Low in South Gate. Good sign?

I have some good news and some bad news.

Bad news first, if your a home buyer in South Gate, home inventory is low, which means your options are limited, and good homes go quick.

Now it is time for the good news.

Last year around this time there were more than 125 active listings for single-family residences in the City of South Gate, CA.

As of today March 30, 2012, there are 85 active listings.  That’s about a 30% decrease. No, no, no, This is NOT a bad thing. As a matter of fact, I think its a great sign. It means the economy is moving.

For every home that is purchased it creates a lot of jobs. You have your realtors, escrow officers, title companies, county workers, loan officers, underwriters, appraisal companies, inspectors, contractors, plumbers, city workers, handymen, engineers, drafters, assistants,  and more if you want to break it down even more.

You have the Home Depot employees when you go buy plants for your new home, you have Edison company, when they connect your electricity. I mean I go on and on.

As a matter of fact I will…You also have Sears, when you buy your stove, your gardeners. You have the cleaning crew that cleans the realtor, lenders, escrow offices and banks so we can keep doing what we're doing.

I mean it is a huge domino effect, and if it is an investor that will rehab the home it generates even more jobs. I believe this is what will help the economy. It has to start somewhere.

Ok back to the Housing market...

People are investing and making things happen. Just like any product or investment. If inventory is low, prices are bound to go up. Example, if there is a nice 3 bedroom 2 bath home in move in condition, for 275,000.

There are a lot more buyers targeting this property because of the lack of nice 3 bed 2 bath homes.

So what happens??? Bidding Wars...Which translates to higher than listing prices.

I actually have noticed if the property is in good shape and qualifies for FHA it usually sells for listing price or it goes a little higher. The change of economy is not going to change overnight however this is a good start.  
At times, your monthly payments are lower to purchase a home than to pay rent.

Have you ever seen rent prices go down??? Didn't think so...Then you have the residential Income inventory (units).

Talk about low in inventory. If the units are in good shape, they wont last more than a week on the market.

At times I seen they do not last 1 day. It’s incredible the amount of people looking to buy units. Being a area specialist I have to be on top of the market.

I check the MLS 3 times a day for new listings and change of status. I also check the foreclosure forecast, to see what properties might be coming onto the market.

Now with the opportunity to short sale, a lot more people are taking advantage of this opportunity to buy at discount prices. Remember though, a short sale is a privilege not a right, So take advantage if you qualify to Short Sale.

People Complain and they say, ”Banks aren't helping us out." Well they are and it is called a short sale. Where else can you be forgiven for owing more than something is worth, I dare you to go down to the car dealership and return your car, and say "please forgive me for my negative equity."

You'll get laughed at and possibly kicked in the stomach. With a short sale, you even get cash for keys and live at the property until the process is done, you can even purchase soon after you short sale.

So my opinion is to take advantage and do it, do not foreclose.

We will hope some of this information has helped influence your purchase, and if you were on the fence about buying, I hope you tipped over the fence right into your new home.

I hope you see now that it is a great thing for you and OUR economy.