How hot was the California housing market? The median price up 20.6% year over year, and the median time on the market only 10 days.
There are several elements that are now coming into play…
Will the higher interest rates and property values affect the affordability level where it takes buyers out of the market…or knock them off the (procrastination) wall and push them into buying?
With the economy opening, will the extracurricular funds that have been allocated to purchase real estate, now be used towards vacations, etc?
Without the paranoia of COVID infected buyers walking through properties, will more owners now be open to putting their properties on the market?
Will more inventory help normalize the market, and make it easier for a seller to find a new property, and perpetuate more healthy a move up market?
Will the normal spring buying season kick in, or have the purchases been pulled forward but the lower rates?
Will the stronger post COVID economy perpetuate the strong housing market… Regardless of the interest rates?
Will the mortgage payment forbearances actually turn into foreclosures?
I can keep going on the upcoming variables that will affect the market. What we do know is this has been an unhealthy real estate market, created by artificially lowered interest rates, and a low inventory created by inadequate building for decades to supply the population growth. The winners have been the pre-existing owners accumulating equity, and the segment of the workforce not negatively affected by the pandemic shutdowns.
We’ll know how this plays out within the next couple months. Stay tuned…
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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