I’ve mentioned this before, but the real estate headlines you see on the news are often behind the curve. Take today’s news: “Existing-home sales picked up in October, rising 3.4% for the month to a pace of 3.96 million. They also notched the first year-over-year gain (+2.9%) since July 2021. Homebuyers benefited from an uptick in newly listed for-sale homes and increased buying power from mortgage rates that dropped in August to hit a two-year low in September.”
What’s not emphasized is the timing. These sales were largely based on contracts signed when mortgage rates hit their lowest point of the cycle in mid-September. Fast forward, and rates have since spiked by 0.75%, significantly impacting affordability for potential buyers.
Meanwhile, property values continue to appreciate, which is great for current homeowners who’ve seen their equity grow. However, this creates a challenging environment for first-time buyers trying to enter the market.
On the bright side, inventory has been recovering steadily from the historic lows of the pandemic era. This gives buyers more options, though it’s not all good news across the board. Condo inventory, for instance, has surged 68% year-over-year, but sales are down 7%. Why? Many condo complexes are grappling with pressing issues like skyrocketing HOA insurance premiums, underfunded reserves, and escalating dues. These challenges make financing and purchasing in HOA-governed properties more difficult.
I’ve also noticed that several clients—both buyers and sellers—had been waiting to make a move until after the election. Now that it’s behind us, the next big question is how the mortgage rates, real estate market, and broader economy will unfold as we head into 2025. It’s a dynamic moment, with multiple scenarios in play.
If you are in the Los Angeles area, and have any questions or real estate sales or financing needs, feel free to contact me
Ron Henderson GRI, SRES, SFR, RECS, CIAS, CREN, GREEN
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – Southland Regional Association of Realtors (2025)
Gov’t Affairs Chair – California Association of Mortgage Professionals (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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