Real Estate Market Update - 08/08/2023

August 9, 2023

Real Estate Market Update - 08/08/2023

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.

Read Our August Newsletter Here

Recent Blog Posts

Stay up to date on the latest real estate trends.

Real Estate Market Update - 08/08/2023

August 9, 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… Read more

The Market Momentum This Summer

July 10, 2023

We are delighted to bring you some exciting highlights on the current state of the Greater Los Angeles and Orange County housing markets. As we delve into the luxury a… Read more

A Strong Start in Summer Sales

June 9, 2023

The residential housing market in Los Angeles and Orange County has exhibited remarkable strength, marked by high demand and limited supply. This trend shows no signs … Read more

Gearing Up for the Start of Summer

May 18, 2023

The recent rate hikes by the Federal Reserve have had a noticeable impact on mortgage rates. As interest rates rise, mortgage rates tend to follow suit, making it more… Read more

Springing Ahead in the 2023 Real Estate Market

April 21, 2023

As we enter the Spring season of 2023, we wanted to provide you with an update on the current state of the real estate market. In recent months, we have seen a steady … Read more

Spring Forecast for L.A. Home Sales

April 4, 2023

Spring is here and is typically a busy time for our team to prepare our sellers to list their homes on the market. Simultaneously, we have been working diligently to f… Read more

Banking Disruptions - A Potential Silver Lining for Homebuyers

March 17, 2023

So much has happened these last two weeks in the banking sector. The collapse of two prominent banks has caused a state of panic, forcing the Federal government to mov… Read more

Getting Past the Rain

March 3, 2023

Torrential rains and mortgage rates hikes in Los Angeles and Orange County amidst the past several weeks didn’t stop many of our buyers and sellers from making big mov… Read more

The Housing Market Is Off to the Races

February 14, 2023

January was a hot month where we saw buyers jumping back into their home searches as mortgage rates took a brief yet significant nose dive compared to where rates were… Read more

Let's Talk

You’ve got questions and we can’t wait to answer them.