If You Haven’t Watched the News for a Few Days You Are Probably Already Feeling Better

The news continues to be negative on all fronts (they have to make their ratings after all). However, Scott Gibson, President of Gibson International, insists that its important to maintain perspective.

When people say to me I lost $9,000 in the stock market today, I can’t help but ask, “Did you sell?” because if you didn’t actually sell then you haven’t lost anything yet. It’s important to stay the course and know that we will get out of this. It’s short term thinking that’s really preventing the solid recovery that we need.

Scott continued to discuss a need for perspective particularly when it comes to a discussion of the various markets. While it’s important to pay attention to other markets such as those in Europe, it’s important to note their size and ultimate weight in the global economy. California alone is one of the largest economies in the world so it’s important to not lose sight of the effects of local economy on everyone’s day to day versus how instability in Italy is going to affect the market here. Hard assets continue to get a boost from uncertainty, seen most dramatically in gold. As Scott said lightheartedly, “Hopefully soon, real estate will be seen that way too.” He is still betting that the market will see a solid year end finish compared to previous years.

Rumor Mill: Fannie Mae and Freddie Mac Changes in the Works

It is rumored that Fannie Mae and Freddie Mac may form something similar to the Resolution Trust Corporation formed at the end of the 80s as a result the savings and loans collapse earlier in the decade. This organization would be a way for the double FMs to sell homes to private investors to get them off their books and into the markets to improve their balance sheets. A few individuals in the know have stated that the double FMs have already stopped releasing properties as they have been for the last several months which makes this rumor a more than likely possibility.

First Time Buyer Market is Hotttttttt

Agents expressed a common sentiment at today’s meeting that the first time buyers market is definitely hot, hot, hot. The under $600k homes and condos were busiest this past weekend, with many young couples showing up extremely intent on buying. Carla Winnie, Associate Manager at Gibson International, held open her listing at 1925 South Beverly Glen in Westwood (LP: $599,000, on the market since 8/12) and said not only that it was “packed” but that she has one offer and is expecting a second one soon. Top reason for this caliente group of possible clientele? Savvy parents are letting their kids in on the secret us agents already know: record low interest rates+low prices+ low inventory= a fantastic time to buy. This window is closing in the Los Angeles market and it’s closing soon. Jason Squire, an extremely active agent in the valley had this anecdote to share.

I’ve been working with a client from New York for almost two years. He is an incredibly intelligent guy who has been keeping a solid eye on the economy and he has now said to me, “Jason, it’s time.  I want to buy something for my daughter ASAP.” He knows that we are coming up on year 5 of this cycle and that if we haven’t hit the bottom of the bell curve, we are going to be hitting it soon.

Last But Not Least: Hot New Properties From Gibson International

OPEN TOMORROW 8/22 FROM 11am -2pm

Come visit us again next Monday for more info on what people are talking about in this crazy business!

For more info you can always contact me directly at 310.622.7436.

To connect with agents in this article please reach out to them on their direct lines:

Scott Gibson: 310.622.7401
Carla Winnie: 310.622.7418
Jason Squire: 310.622.7482