Originally Posted by
allegro
You are in a Seller's market. Real estate is never truly "balanced" - it's either a buyer's or seller's market. When it's a seller's market, that's when housing prices increase (and rental prices increase because developers convert rentals to condos, and people are priced out of purchases so the rental demand goes up, the supply goes down, the rent goes up, and the opposite happens during big crashes and depressions). But during seller's markets, anytime in history, you never have contingencies on sale contracts, ever; you have bridge loans or you sell, first. So you"re lucky to get a contingency. And there has never been any "central planning" in sales because that's Orwellian to the concept of real estate (we're talking sales, here; rentals is a whole other animal). And if you use a buyer's agent, you aren't paying their commission and no cronyism exists; they're either good or they suck. Also, so long as you don't sell during a crash, nothing happens; we bought in 1998, the house will be paid off in 2 years. Contrary to relatively recent belief (and the Flipping TV shows), real estate is a long-term investment.
We're still in a Buyer's market here in Chicago. Most of my work is for REOs (banks) because there is still a shitload of foreclosure inventory out there; no credits, no repairs, no contingencies, but these are priced so low we often get over list. Unfortunately, the comps around here keep the prices pretty low right now. Supply is higher than demand, buyers are still very tentative.
(Hey, if you didn't put 20% down and you are paying PMI but your equity is up to 20%, now ... REFI!!!)
Ah, LA has rent control, like NYC, albeit a shitty program, it appears.