If this is you, then I have a little bit of a news flash. The price of a home isn’t going to be dropping anytime soon. If anything, there’s been a lack of homes available on the market, which is causing an influx of bidding wars. And you know what that leads to? The price of new listings on the market going up as a result of what a comparable sold for a few days ago.
Have I got your attention yet? Well there’s more. And that’s interest rates. We haven’t seen a crazy increase in rates, but they have risen a little. In the state of California, conventional 30-year loans are at an APR of 4.448% and climbing. So do you know what that means? Even if housing prices stay relative to what they are now, you’ll ultimately be paying more anyway because of the interest on loans.
This is the truth of the market as I see it…in Los Angeles…right now. If you’re a potential buyer, I urge you to talk to me or any realtor you feel comfortable with to answer all the questions you may have. A lot of hesitation comes from not knowing entirely what is going on, so just be sure to educate yourselves while you still have your foot on the brake pedal. And then maybe you’ll be more open to jumping into the market with a greater knowledge of what you can get with your money now as opposed to a year from now. In no way am I saying it’s now or never. It’s just what it is right now. Think of it as tough love!
Be sure to check out current listings in your dream neighborhood at www.j-wanlim.kw.com! I’m happy to help you in any way I can:)