Real Estate Market Is Not Hopeless

I must take issue with the article “Stuck on the Bottom,” which appeared in the Valley Business section on Oct. 5. Although it is true that the Valley real estate market is depressed, it is not hopeless.

We are the Valley’s largest real estate brokerage company and have experienced an upswing in business for the past four months. Buyers are taking advantage of the lowest interest rates in 20 years along with very low home prices.

Contrary to popular belief, the real estate slump actually began in the second half of 1989; therefore, we are almost 4 1/2 years into it. The article would have one believe that our recession is worse than the one that occurred in Houston. It is not.

Real estate markets throughout most of the country are in a recovery stage and in many areas, such as Denver, prices are appreciating as much as 1 1/2% per month. What we must remember is that we do not have to have job growth to start the real estate market recovery. Real estate markets, just as the stock market, try to anticipate future events. If the perception is that the economic recovery is a year away, then it is logical that people will stop postponing their decision to buy, which may very well be happening.

Although we can no longer rely on population growth in Los Angeles, we have observed a movement of people from the Mid-Wilshire and Downtown areas to the San Fernando Valley so that they may be able to obtain a better lifestyle.

There is light at the end of the tunnel, and it’s not a train.

FRED SANDS

Los Angeles President,

FRED SANDS REALTORS