The Real Deal on Real Estate

“The cautious buyers of Westside real estate and Los Angeles real estate in general are concerned about the local and national economy, the stability of their jobs, the value and safety of their investment, and how to protect their real estate investments over the next year. Short-term thinking and a general hysteria has become commonplace.” So says Scott Gibson, President and CEO of Westside real estate firm Gibson International, which holds several listings ranging from Santa Monica condos to Pacific Palisades view homes to Beverly Hills estates in his Open Letter to the Public.

Gibson is one of the few industry experts willing to go out on a limb about the real state of the real estate market, emphasizing that we are NOT in danger of falling into a depression “in Los Angeles or anywhere else”. This assertion is backed up by solid numbers that illustrate the vast differences between the depression (when “50% of the homes in the U.S. went into foreclosure and 25% of the nation was unemployed”) and now, with a 2.5% national foreclosure rate and unemployment hovering around 7%.

Numbers released in the last few days show sales of existing homes rising by the largest amount in more than five years in September, and sales of new homes spiking. Are we beginning to see a backlash against all of the fear mongering and the beginnings of a turnaround? “The panic that is being created in the media creates missed opportunities for buyers of all types of properties, regardless of the area. Have we been insulated here on the Westside from the high foreclosure rates that have plagued many other areas—yes. But the Westside is not immune from fear,” said Gibson. “Thankfully, with the home sales surprisingly up last month, and especially Southern California sales, we are starting to see people out there who are looking at real estate in a more substantive fashion, at least on a long term basis. It’s not just an investment, it’s a basic human need.”

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