A few recent observations on what’s transpiring presently as we’re entering the “Spring Housing Season” but in the middle of a chaotic economic environment:
• Consumer confidence is down because of uncertainties – Tariffs, Jobs, Stock Market returns, selling or buying properties… Are these issues temporary? Going to get worse? Or better? Need clarity
• Tariffs and labor costs are making new construction, or property rehabilitation more costly (applicable when buying a property that needs work for buyer or investor)
• The recent fires are making construction permitting a more lengthy process, adding traffic to freeways as PCH and Topanga Canyon are shut down.
• Insurance is an issue, procuring and price (adds to property purchase cost, and loan qualifying)
• Interest Rates are OK in the range historically 6.75%ish (down from fairly recent 8%, substantially higher than Covid era 3%)
• As a generality between housing prices, interest rates (mortgage payments), property tax, insurance (HOA if applicable), affordability is an issue for the majority of the population
• Housing Inventory is up substantially over past couple years. Buyers have more options. When there was little inventory buyers submitted offers on any property they could afford. Multiple offers were typical. Properties that would normally sit on the market (on main streets, didn’t show well, had work to be done, on Flag Lots, etc) were selling. Those properties now don’t receive much attention, as there are presently fewer buyers in the market, and they have more properties to look at.
• Many Homeowner Associations have issues and don’t qualify for “A” paper financing (Low Reserves, Inadequate Insurance Coverage, Delinquency Rates, Owner Occupancy Ratios, Structural and Maintenance Issues, ect)
• Gov’t is tightening some FHA loan qualifying guidelines, and Freddy and Fannie may go private, limiting some loans to buyers. Private secondary money market may open up adding some non gov’t backed loan programs. Critical for the housing ecosystem.
• Even if there is a recession, housing generally still does well (interest rates drop).
• Overall housing stock is still too low for the quantity of local population. Short term we may see housing prices drop. Long term prices will appreciate.
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 – Southland Regional Association of Realtors (2025)
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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