In a nutshell the housing market and mortgage rates are basically in a status quo position.
Housing active inventory is up but still tight from potential sellers being locked in with historically low interest rates. Overall sales are active. Well priced listings in the lower price range sell quick with multiple offers. Properties overpriced are taking price reductions. Higher priced properties over $2+ Million are moving slower.
Single Family Dwellings prices have continued to go up at a good 14% clip year over year.
Condos are a bit of a dichotomy. They have activity mainly because they are priced lower than Single Family Dwellings. The problem is many HOAs are having master insurance policy and reserve issues. Buyers have to be critical of a complex’s economic viability going forward, otherwise they can get hit with major dues increases and assessments. Complexes with existing issues will have problems getting loans and realize a lower buyer base.
Potential condo buyers, or any buyer purchasing a property with a Homeowner’s Association needs to ask the right questions and review all the applicable HOA documentation. Just because something is cheap doesn’t make it a good purchase.
Long term mortgage rates have been bouncing around. Check out the attached chart of the 30 year fixed. I’ve said it many times, the media mortgage reports are garbage… at least obsolete by the time it hits the news. Feddie Mac releases their interest rate report on Thursday, based on the rates the previous week. That’s ancient history when it comes to mortgage rates, as they can change several times a day.
Affordability levels are low as buyers are dealing higher prices, interest rates around 7%, property taxes and the higher insurance costs. The other side of it, the quantity of buyers waiting for lower interest rates are in abundance. When the rates come down more buyers will come into the system, forcing prices higher. 20% down payments are not required. There are many downpayment assistance programs out there, as long as the buyer’s qualifying numbers and the subject property meet the criteria.
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 – 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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