Are We in a Bubble? Demand Vs. Speculation
That's the million dollar question that everyone wants to know. Inventory levels remain low, but we did see a slight uptick these last couple of weeks. The market we have been experiencing for a few years now feels more a function of supply and demand versus rampant speculation. The main reason, at least locally, that we see people buying is the need for a home and some of the demand may have been sped up by COVID as people evaluated their options in the rental space. The other factor that makes it seem different than the 2007/2008 market is that buyers, overall, are stronger and lenders have been taking less risk. Also consider that foreclosures in 2021 dropped to their lowest level since Attom Data Solutions started tracking this metric in 2005. All that to say, still a seller's market until inventory increases substantially or the buyers go away, stay tuned!
Key highlights for this month:
• Ten Design Rules for Making a Narrow Kitchen Seem Wider
• Five Tax Deductions When Selling a Home
• Housing prices continue uptrend, see stats below.
Housing experts keep raising their estimates Single family home prices(median) for December 2021-February 2022:
Glendale + 19.4%
Burbank + 19.0%
Toluca Lake* + 13.0%
Pasadena + 17.5%
Studio City + 20.4%
Hollywood Hills* + 13.3%
Valley Village + 20.2%
Sherman Oaks + 15.7%
Woodland Hills + 25.8%
*Please note that this area had few sales so percentages are somewhat misleading
Weekly national mortgage rates for loans under $400,000, top credit scores:
30 yr. fixed rate 3.89
15 yr. fixed rate 3.14
5 yr. adjustable rate 2.98
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