As you can see in the attached charts, the real estate market still remains strong going into the Spring 2022 buying season. The only tricky part is what’s going to happen with consumer confidence and the interest rates because of Geopolitical issues, high inflation, the Federal Reserve increasing the Fed Funds Rate, and liquidating the accumulated balance sheet from conducting Quantitative Easing during the pandemic.
All the basic numbers reflect strength. Lower unsold inventory, shorter days on the market. The lower quantity of home sales is only a result of the low inventory.
The prices are still appreciating, and multiple offers are typical. The higher pricing and higher interest rates will affect marginal buyers. We’ll see more buyers avoid higher 30 year fixed for more creative termed mortgages, to help qualify.
A future blog will show how the structural elements of existing inventory, new construction, and the age demographics of the population will maintain a strong market going forward. Will the market slow down? Eventually… It should be because of the interest rates, but that would be welcome. The tight market the way it’s been has been unhealthy.
Let’s watch the inventory levels. That will be an indication of market change. Ignore any media with headlines about higher foreclosure levels. There were foreclosure moratoriums, and any increase from historically low levels can produce a high percentage of change, but still historically low actual numbers.
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me
Ron Henderson GRI, SRES, SFR, RECS, CIAS
President/Broker
Multi Real Estate Services, Inc.
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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