Information brought to you by Jenny A. Le, licensed real estate agent in Chino Hills, CA.
Buyers now have the upper hand when negotiating in today’s market, which means sellers must painstakingly arrive at the asking price to be successful.
ATTENTION SELLERS: To find success, sellers must price their homes according to its Fair Market Value. Pricing a home accurately is more important today than any other year since the end of the Great Recession. Negotiations are now leaning in favor of buyers, prices are slowly falling, and with affordability taking a drastic hit, buyers are unwilling to stretch, and they will do their due diligence in approaching any offer to purchase. Sellers also must be patient. The housing market is no longer instantaneous. The closer a home looks to a model, the faster it will sell. Pricing a home at the last comparable sale, yet it needs a lot of work, will simply not sell in today’s market. As a result, sellers have a choice. They can either invest in their home and update it prior to placing it on the market, or they can adjust the price to reflect the work that needs to be done. Buyers will also subtract for the hassle to do it themselves....read more
From the lows of 3.22% in January to a high of 6.7% last week September, rising mortgage rates have substantially impacted the housing market in so many ways.read more
The insane pace of the housing market has come to an end and the instant marketplace has shifted to a much more normal, typical speed for this time of year.
Everyone seemingly has an opinion when it comes to the housing market. Forget economic models, data, charts, and statistics. Most believe that since values have soared to ridiculous heights and now mortgage rates have skyrocketed to their highest level since 2008, prices must correct.
Yet, this kind of logic ignores facts:
- There is still a huge missing ingredient when it comes to housing, not enough homes.
- There is an absurd lack of homes available to purchase. Due to a lack of supply, the housing market continues to line up in favor of sellers...
Even with muted demand due to the higher mortgage rate environment, the muted supply of available homes has allowed the Los Angeles County housing market to continue to line up slightly in favor of sellers....read more
Interest rates continue their upward march, but the housing market in California remains competitive with few signs of buyers pulling back despite another rate hike by the Federal Reserve last week.
The latest jobs report showed continued expansion in the macro economy, but the ongoing labor shortage arising from a depressed labor force will mean that the Fed is likely to remain aggressive in their approach to inflation, meaning that longer- term rates will likely rise further as well.
Fortunately, listings continue to rise across the state, which should help buyers eager to find a home before rates climb any higher...MOREread more