Southern California’s Real Estate Market – “Baby it’s cold outside,” but Southern California’s real estate market continues heating up! Home sales have jumped up again and prices have rose nearly 2%. Economists are crediting the increased real estate activity to rising incomes and falling mortgage rates, making real estate more affordable.
Photo of 2540 Vista Del Sol | La Verne, CA
According to the Bureau of Labor Statistics, so far this year, the average hourly wage in California has increased by 5% (since 2018). Furthermore, the average 30 year fixed mortgage has continued to drop, now standing at BELOW 4% (a percentage point lower compared to last year). What does this mean in terms of monthly mortgage payments? Well, with these numbers, compared to last year, the monthly mortgage payment on a $535,000 home can be $260 lower; AND on a typical “conforming” loan, it can be $320 lower.
To bring it a bit more into perspective, about a week ago, it was reported that in Orange County, the median home price increase by .7% to $725,000. On top of that, sales in Orange County increased by 6%. Similarly, in Los Angeles County, the median home price increased by 4.2% to $620,000 and sales increased by 5.6%. Then today, the CoreLogic Home Price Index (released December 13, 2019), confirmed that home values in Orange County went up again, this time by 1.5% and similarly, values in Los Angeles went up again, this time by 2.5%! These values are at their highest in four months for Los Angeles and in seven months for Orange County.
Here’s where it starts to get even hotter for those considering to list their home! Since we’ve entered the fall/winter season, listings have dropped 8%. This is the largest decline since 2012, making it harder for buyers.
With limited supply and shrinking inventory, as well as reduced interest rates and overall a stronger Southern California economy, we have hungry and qualified buyers house hunting to purchase a home, like yours, in your neighborhood! The figures don’t lie. Now is the time to list. Furthermore, homes are selling quicker!
In other words, now is the time to list, because in Southern California, we are experiencing: (1) Strong demand by ready, willing, and able to buy home buyers; (2) Less competition for home sellers, due to the limited supply of listings and strong buyer demand; (3) The rise of serious buyers during Winter, as they are ready and eager to move now; (4) The opportunities to move up; (5) The marketing power behind showing a home decorated for the holidays; (6) The great number of relocation buyers during the holidays, as many companies are still hiring in the end of the year and need employees to start as soon as possible; as well as (7) A new year in the horizon, hopefully encouraging you to look into the reason of why you’re listing your home and boost that reasoning to transform your life and start your new year strong.
If you’re on the fence about listing your home now, just know that late fall, early winter creates a sweet spot for sellers. To determine whether listing your home now is the best move for you, as well as what are the subsequent steps to reach your real estate goals, please contact me.
As always, if you need any help listing or buying a home, please don’t hesitate to reach out.
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