Friends, Family & Clients,
Home Inventory in California is at the lowest level since April of 2013. Demand for homes in at the highest since June of 2012. Current Inventory is 69% below one year ago. Mortgage Applications are up 27% over last year at this time. Interest Rates are driving up demand as the rates are below 3% for most buyers.
This is a great time to list your home as the peak selling season which is traditionally in the springtime has been delayed until the present time due to the pandemic. Demand may wane as children return to school and we approach the holiday season. The days on market is currently only 35 days in Los Angeles County. It was 79 days one year ago.
There doesn’t appear to be a realistic fear of foreclosures or short sales anytime soon. Statistics show that 77% of home owners have at least 20% equity in their homes and 90% have at least 10% equity in their homes. Only 1% of home owners have negative equity at this time. Forbearance was offer at the start of Covid-19 to protect homeowners from losing their home. We are not seeing a bubble in real estate as homes are still affordable. Continued rising demand could eventually lead to a bubble though.
There is a positive change for sellers that are looking to buy another home. Sellers are now looking at contingent offers from buyers that have a home to sell. The reason is they are aware that the home will sell quickly. However, with multiple offers on so many homes it is unlikely to accept a contingent offer over one that is non-contingent and as good of an offer.
Are you thinking of buying an investment property? There are several reasons to begin your search right away. Locking in interest rates for up to 30 years is the biggest reason to buy now. Price may go down but with higher interest rates the payment might be higher. Tax Benefits begin once you close escrow. Speak with your CPA to discuss all the benefits that are included with an investment property. Prices continue to rise; inventory doesn’t seem to be increasing and demand for quality rental properties remains at one of the highest levels in many years.
Dani & I own several investment properties and have relationships with Property Management Companies, Lenders, Handyman, Termite Companies, Painters. We would love to share information on being a landlord with you.
Call, Text or Email us to meet to discuss the value of your home or to start looking for your new home or investment property. We always look forward to hearing from you. Please refer us to your family, friends, co-workers or acquaintances and share our newsletter with them.
Presented by your Friends & Realtor,
Tony & Dani Lewis Summit Real Estate Group
Call or Text us at 661-510-7975
Serving Santa Clarita, Los Angeles County & Orange County
Offices in Valencia & Aliso Viejo, California