California’s real estate market continues to normalize. The year-over-year numbers are skewed as over the last 12 month period, the first 6 months were still a super hot market with artificially low 3% mortgage rates and no inventory… the past 6 months the Federal Reserve is taking away the liquidity, affordability is dropping, and inventory is building.
We’re mid-way through the Fed’s tightening cycle. Fed Chair Powell a few days ago warned us their primary focus now is to fight off the high inflation, and they’ll tighten higher and longer, and some pain will have to be endured. Expect some negative real estate numbers through the end of the year, into next.
The market over the past couple years has been “too strong” and unhealthy. 14 offers on every listing within 72 hours after hitting the market and only all cash or large down payments were considered. The upside is now buyers will have more inventory to pick from, first time buyers will stand a chance to get into a home.
The real estate market will soften for a while, but housing will continue to be the gateway to long term financial success.
If you are in the Los Angeles area, and 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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