June, 2013 Market Report - Agoura Hills
The housing for June 30th shows that the market is slowing, and that higher interest rates are having an effect. We have already seen interest rates rise a full point. According to Mark Moskowitz, a top Real Estate Agent in Southern California who specializes in Los Angeles andVentura County Real Estate, the average buyer has seen their payments go up 25-30% for the same loan. Mark noted that every day, his lenders are sending him revised qualification letters for his buyers. Clients that could afford a $700,000 home are now qualifying for a home priced in the high $500,000 to low $600,000 range.
This definitely will affect home values. The reason home prices have risen 15-20% in the first half of 2013 is due to the artificially low interest rates. In the entry level homes, where many investors are still paying cash, this will have less of an impact. There will still be a shortage of properties at the entry level. However, in the move-up market, especially homes priced in the $500,000 to $800,000 range, the rising interest rates will limit the number of buyers who can qualify.
In Agoura Hills, the number of homes that were on the market in the month of June reached the highest point for 2013. This shows that rising interest rates are slowing the market down, and that homes are staying on the market longer. The market still remains strong, however, sellers are less likely to be able to keep increasing their prices. Sellers have to show value and make quality improvements if they want to continue to get top dollar.
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