If a picture tells 1000 words, let’s check out four charts of the San Fernando Valley housing statistics for August. The actual numbers don’t matter as much as the change of direction of the activity.
In a nutshell, new listings and inventory dropped after the last few months of active and new inventory increasing; sales increased. The sign of a potentially stabilizing market.
Is this the activity created when the interest rates dropped from the middle of June through July? Or are the buyers getting acclimated to the higher mortgage rates and realizing there’s more housing stock to choose from? Maybe both. We’ll see what transpires over the next couple of months as the interest rates have popped back up from their temporary drop.
We do know we can’t fight the Fed and their priority is to fight inflation. Rates are going up, and the economy will slow down. The real estate market has slowed down but from an outrageously hot (and unsustainable) level.
Even with a potential 10-15% drop in local property valuations during the market reset, the fundamentals of demographics and the inadequate quantity of construction over the past 20 years will support the housing market, the long term.
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
Leave a Reply