Inflation and Housing Market
Inflation isn't just about higher prices at the grocery store. It weaves into the very fabric of our housing market, influencing property values, construction costs, and mortgage rates. Delve into the intricate dance between inflation and real estate and arm yourself with knowledge for smarter housing decisions.
Is now the Time to Buy a Home in Los Angeles? Understanding the Market and Challenges
Los Angeles is one of the most desirable cities globally, but is it a good time to buy a home? With rising housing prices, a shortage of available properties, and economic uncertainty, prospective homebuyers may wonder if now is the right time to purchase. While the city's real estate market presents unique challenges, such as low inventory and intense competition, it also offers diverse neighborhoods, job opportunities, and significant potential for real estate investment.
Foreclosure Numbers Today vs. 2008: Why the Housing Market Looks Different Now
Are you worried about the increasing number of foreclosures in today's housing market? The headlines can be terrifying, but don't let them cloud your judgment. While foreclosures may increase over the next few months, it's essential to understand what that means. Don't let fear hold you back from buying a house.
Los Angeles Real Estate Data
Jordan Levine, C.A.R.'s Vice President and Chief Economist, warns that high inflationary pressures will result in elevated mortgage rates, reducing purchasing power and depressing housing affordability in the upcoming year. A pullback in sales and a downward adjustment in home prices are expected in 2023 due to high borrowing costs. Additionally, low inventory and rising mortgage rates caused by inflation may impact sales activity. The recent implementation of Measure ULA, also known as the "mansion tax," is expected to bring a substantial transfer fee to the luxury real estate market of $5 million or over in Los Angeles. However, the long-term impact of this measure is still uncertain. Despite properties selling quickly in Los Angeles County, sales of existing single-family homes have decreased by 38.2% YoY. If you want to purchase a home in LA, be prepared to spend a little more than the asking price.
Springing into Action: Homebuyer Activity Heats Up for the Season Ahead
With the arrival of spring, the housing market is heating up as more and more buyers enter the market. Mortgage applications are up, indicating increased consumer demand and a potential rise in home sales. Now is the perfect time for homeowners to consider selling their homes and capitalizing on the current market conditions.