The chart says it all. Due to low interest rates, substantial buyer motivation and low inventory, California property values have jumped substantially over the past 5 months.
At some point, the interest rates will go up, and pricing will get to a point where the affordability will be affected, and pricing will stabilize, or back off. In the meanwhile, we’ll have to keep an eye on inventory levels. That will be the leading indicator of a market change.
I get potential buyers ask if they should hold off buying, and wait for the market to change? In reality, if the pricing was to back off at some point, it would be from what level? At what percentage higher from where we’re at? And what would the interest rates (payment) be at that point? Timing is everything…
For sellers, depending on the specific property, you can get burned trying to hold off to squeak out the last dollar. What will you do after selling the property…? What your short and long term goals? Many variables to evaluate.
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, 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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