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
Stay up to date on the latest real estate trends.
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