The higher interest rates are having an effect on San Fernando Valley housing transactions, but mainly in the capacity of how many qualified offers are being sent for the limited properties on the market… and sellers have to be more realistic on their listing prices.
When the media reports price reductions, remember that’s based on listing prices, not the sales prices. True, you shouldn’t be seeing as many crazy bidding wars, but there are still many qualified buyers, for well priced properties.
First time buyers are getting hurt by the higher interest rates, but then again rents are going up faster than property values. Potential buyers that are going to wait for prices to drop substantially are going to be disappointed.
Interest rates will come back down, but from what level, and it’ll take a recession and the Fed’s defeat of high inflation… Not until at least early 2023. Purchase with an Adjustable Rate Mortgage with a lower rate, and plan on refinancing into a fixed at a later time, may be a good strategy.
Notice the historical 63 year average appreciation of the local house is running 5.58%. That’s a large sample. Ownership of real estate has always been a great long term investment and hedge against inflation.
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