Sellers are holding on to their properties in the hope that interest rates will decrease before their current loan terms expire.Based on the discussion above, it is clear that rent growth over the next 12 months will not have a sufficient impact on property values to offset the current interest rate environment.

Just to clarify, there will not be entitlement nor LADWP, this is a tenant improvement interior project where the permit is approved (We just need supplemental for non-bearing wall layout change) and we're decreasing occupancy.

I recently decreased the rent $50. 

@Michael Terry  The challenge is the level of control you will need to give up and the cost (decrease in yield/profit) to have someone handle all those aspects. 

A lot of price decreases, days on market increases, and inventory increases can be attributed to some of the damaged properties that have been listed. 

Do not buy anywhere if the state or metro populations are static or decreasing.

You'll have to pay ~6% for however long it takes for rates to decrease, but at that point you'll have racked up equity in a home; you'll never get that time back.

So if you can decrease the rate at which you are borrowing the same amount of money, than it's all the same. 

Living there and decreasing my living expenses was great.

I saw a report that showed if rates decreased to a measly 6.5% that it would open up homeownership for over 1,000,000 people.