We are officially in the middle of the Spring Selling Season and boy do the numbers show it! The average sold price of homes in Los Angeles County have gone up almost 5% in the last 30 days! We are also seeing that homes are spending less time on the market and the availability of active inventory is down.
What does this all mean?
The rate drop earlier this month really pushed buyers that were on the fence about purchasing a home to act. With rates as low as 3.875% on a 30yr fixed loan, buyers didn’t want to risk losing out on the opportunity to purchase at rates we hadn’t come across in over a year! This gave the slower market that we saw during the winter months the nudge it needed to get it rolling this Spring!
If you are a Buyer:
Rates are at an all-time low in over a year! A month ago you would likely have been looking at a 4.5% on a 30 year fixed loan, this makes a HUGE difference! Now is the time to get off that fence and purchase your home!
As an example: A $400,000 home financed with a 30 year FHA loan at 4.5% would give you a principal payment of $1,990.03. The SAME house financed at 3.875% would give you a principal payment of $1,846.88. Sure, you might think that $143.15 isn’t that big a deal, but over 30 years, that adds up to $51,534!
If you are a Seller:
Home Values are continuing to rise, they are not climbing at the rate that we saw during the housing bubble 10 years ago but your home is still increasing in value. With inventory being low and the demand from buyers being high, now is the time to sell your home. There are less competing homes on the market which means more eyes are focusing on your home! For a quick report on how much your home is worth in today’s market click HERE.
As always, I am here to help you understand the real estate market. Please do not hesitate to reach out to me with any questions that you may have. I am only a phone call, email, or text message away and would love to get you the answers that you are looking for.