October Real Estate Update

Rates Rise And Housing Market Is Feeling The Pain The housing market is the most interest rate sensitive sector of our economy. As we've seen over the last few months, the Fed is serious about slowing inflation through interest rate hikes and he, apparently, is not having a problem throwing housing under the bus to try and tame inflation. Experts vary on forecasts, with some looking at 10%+ decreases, nationally, in home prices for the coming year. Corelogic tracks home prices nationwide and reported that home prices for the last twelve months, year over year, rose 13.5%. It's forecasting a price slowdown of 3.2% for the coming twelve months.   Closer to home, I'm seeing more price reductions and longer days on market, homes are still selling and, at the moment, there are buyers. While price reductions present an opportunity for buyers, their pain is more a function that financing a loan has been and will be getting more expensive over the next twelve months. The chart below shows home prices are still registering some gains, but remember that these are lagging statistics that don't take into account the latest interest rate increases. Rates are forecasted to rise again in the next month as the FED is projected to raise rates again in the coming weeks. Below are some good reads for your weekend: As Rates Rise, How Much Do You Need? Pros And Cons Of Buying A Duplex 37 Ways To Make Your House More Sustainable New Tax Brackets for 2023                                                        18 Best Halloween Decorations for 2022                                  Single family home prices(median) for  July 2022-September 2022:     Glendale +            6.7% Burbank      +            4.7% Toluca Lake -               .5% Pasadena +          16.1% Studio City +            4.2% Hollywood Hills* +          40.5% Valley Village +          12.9% Sherman Oaks     +          10.7% Woodland Hills +            3.2% *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   8.03      15 yr. fixed rate     6.71      5 yr. adjustable rate  8.06     Powered by MortgageCalculator.org