August 9, 2023
Real Estate Market Update - 08/08/2023
Mortgage rates have seen a slight increase as of July 27. The 30-year fixed-rate mortgage now stands at 6.81%, up from last week's 6.78%. Comparatively, this time last year, the rate was significantly lower at 5.30%. Similarly, the 15-year fixed-rate mortgage averaged 6.11%, slightly higher than the previous week's 6.06%. A year ago, it was at 4.58%.
LA and Orange County's real estate market has been bustling with activity in the past two weeks. Our team has successfully listed several new properties that garnered multiple offers, including some all-cash transactions. However, stiff competition has also been evident on the buyer's side.
Notably, the recent Federal Reserve rate hike contributed to the slight increase in mortgage rates. Surprisingly, this hasn't dampened buyers' appetite for purchasing homes.
Low inventory remains a key factor in the market, keeping prices stable. As we move forward, the next few months present an excellent opportunity for sellers to put their houses on the market.
Despite the summer season, our dedicated team is hard at work, assisting clients with both selling and buying in this competitive real estate market. If you're considering buying or selling a property, don't hesitate to reach out to us for expert guidance and support.
What We're Reading
Why it’s so hard to buy a home now?
As you have heard throughout 2023, the real estate market has been tough, especially for buyers. While there are fewer buyers motivated to purchase and that are actively shopping, the number of homes being listed for sale has also dropped significantly from a year ago. It has become frustrating and tiring for buyers wanting to own their first home because prices are high, interest rates remain high and supply is extremely low. It is a trifecta of unfavorable factors working against buyers, as outlined in this article by CNN: "Shopping for a home? There’s a lot working against you right now"
One of the main issues is that current homeowners that have existing mortgages are very reluctant to give up their low 2% to 3% mortgage rates to sell their home and purchase a new home requiring a new loan with a 6% to 7% mortgage rate. These potential sellers are opting to stay put, which is keeping the real estate market stagnant. For these sellers to move, it may take a job relocation or family expansion.. or a "make me move" price to incentive them to move.
The good news is that mortgage rates are expected to drop after the summer. If that holds true, then homes may become more affordable again and can kick the housing market back into higher gear.
Stay up to date on the latest real estate trends.
January 15, 2025
Our hearts are with all those impacted by the wildfires in Los Angeles County, our first responders, firefighters and our community who are coming together to support … Read more
December 27, 2024
As we reflect on this past year, Dennis and I want to express our deepest gratitude. Leading Highland Premiere has been an incredible journey, made possible by the har… Read more
December 15, 2024
It is never too early to start planning your New Year’s Eve celebrations, and Los Angeles is the perfect city to ring in the new year. Whether you’re into elegant part… Read more
December 9, 2024
Los Angeles may not have frosty temperatures or natural snowfalls, but it more than makes up for it with dazzling lights, immersive experiences, and whimsical holiday … Read more
December 6, 2024
December has brought festive holidays, cozy vibes and a deceleration of the residential real estate market in Los Angeles. As expected every holiday season, as Los Ang… Read more
November 22, 2024
The definition of luxury living has evolved to address the growing interest in ecological concerns and sustainability. Leading this evolution is the city of Los Angele… Read more
November 11, 2024
October was an exciting month for both our clients and team. Many of our clients took advantage of the lower mortgage rates and closed or locked in their properties pr… Read more
October 7, 2024
As we enter October, the autumn season brings some uncertainty to the real estate market. Despite continually declining interest rates this summer, the Los Angeles rea… Read more
September 9, 2024
September brings continually declining mortgage rates, which remain flat at its lowest rate in over a year at 6.35% for the 30-year fixed mortgage. However, the decrea… Read more
You’ve got questions and we can’t wait to answer them.