September Real Estate Report

Fed Raises Rates, Again.....

The big news is that the Fed raised rates by 3/4 of a percent for the third time this year, it was expected that it would at least do 75 basis points based on the CPI (Consumer Price Index) numbers. Mortgage rates crossed 6% this month and the increases are definitely impacting buyer affordability with buyers that are on the fringes dropping out of the market. The other big news was that the Consumer Price Index rose .1% in August, excluding food and energy it rose .6%, which was much higher than expected, which in turn is fueling the interest rate increases from the Fed.  
Nationally listings continued to rise last month, but we are still well below 2019 levels, at the same time, home prices continued to rise, albeit at a slower pace, with CoreLogic forecasting year over year appreciation(July 2022-July 2023) at 3.8%. Bankrate is forecasting a slow down and went as far as to say that there is no housing bubble as lending fundamentals have remained strong.

Locally we are seeing more inventory in the last few months and I'm seeing more price reductions, but, it bears repeating, inventory levels are way below where we were a few years ago. As the chart below shows home prices are still registering some gains. Overall, buyers are feeling like the market is shifting, they do have more bargaining power as they are competing against fewer buyers, but they are also battling higher rates the longer it takes them to find the right house. 

Below are some good reads for your weekend:

The Best Time To Buy A Home Is......Last Week Of September!
Check out Restoration Hardware's New 80,000 Sq Ft Flagship Store
27 Front Porch Furniture Ideas
10 Must Have Home Upgrades

 

                                       Feeling Salty? Pros and Cons of Salt Water Pools

 

                           

  


 
Single family home prices(median) for  June 2022-August 2022: 
  

Glendale	+            3.4%
Burbank	+          13.3%
Toluca Lake	+          13.2%
Pasadena	+            3.0%
Studio City	+            4.2%
Hollywood Hills*	+          40.5%
Valley Village	+          12.9%
Sherman Oaks	+          19.6%

Woodland Hills

+            8.6%

*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	6.34
15 yr. fixed rate	5.40
5 yr. adjustable rate	5.34

Powered by MortgageCalculator.org