April 21, 2023
Springing Ahead in the 2023 Real Estate Market
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 increase in demand for homes, resulting in a seller's market in many areas of Los Angeles and Orange County.
According to recent market reports, the housing inventory is expected to increase in the coming months, making this the perfect time for homeowners who are considering selling their property. With more homes available on the market, buyers will have more options to choose from, creating what we hope would be a more balanced market.
As we move into the warmer months, many buyers are eager to find a new home before the start of the new school year. This typically results in an increase in demand and competition, further emphasizing the current seller's market.
At Highland Premiere, we understand that selling a home can be a stressful and overwhelming process. Our team of experienced agents is here to guide you through every step of the way, ensuring a smooth and successful transaction. Whether you are looking to upgrade to a larger home, downsize to a smaller property, or relocate to a new area, we are here to help.
What We're Reading
Right now in the housing market, there are some important indicators that appear to be more favorable for buyers than they were earlier in the year. This includes home inventory and interest rates. Naturally, as we enter the spring season, the number of homes available for sale increases and the trend is for more listings to sprout as we get into the summer months. When there is more inventory, then sellers often have to price their homes more attractively (price them lower) so that their listings can stand out from the competition and so they can sell quicker. Additionally, the mortgage interest rates have been steadily declining. Since March 9, when the rates were averaging 6.73% for average 30-year fixed, rates have fallen for 5 consecutive weeks and are currently at 6.27%. When you talk to your lender, you may find that you are able to get even better rates than that depending on the program, closing costs, and conforming vs. non-conforming loan amounts.
While interest rates were climbing up and running away at breakaway speed since the middle of last year, they reached a peak of 7.08% average in November. An article on CNN.com this week suggests that a rate of 5.5% may be the magic number to getting the housing market back to behaving crazy again. That is because more buyers will find the cost of borrowing money to be more and more affordable as rates continue to drop. At 5.5%, rates will feel more like the norm — it appears to be an acceptable rate, situated between the 7.08% peak rate of last year and the record-setting low rate of 2.65% during the midst of the pandemic (when the federal funds rate was at 0%).
Typically, as rates come down, then housing prices tend to go up. If we hit that pattern again, then it may be beneficial for active homebuyers to get ahead of the crowd and complete their home purchase before more and more homebuyers jump back into the market
Read Our April Newsletter Here
Stay up to date on the latest real estate trends.
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
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
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
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
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
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
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
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
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
You’ve got questions and we can’t wait to answer them.