OCTOBER NEWSLETTER
Dear Friends, Family, and Colleagues,
Happy Halloween!
What goes up must come down! As we saw rates hit record highs in the last few months and then come to two year lows last month, this has now changed. Mortgage rates are now creeping back up to July highs - even with the most recent reduction in interest rates. This is partly due to the rise in the stock market and treasuries but experts are also concerned about inflation still.
September’s statewide median home price was $868,150, down 2.3% from August and up 2.9% from $843,500 in September 2023.
Los Angeles County saw a decrease in sales month over month of 6.8% - in addition to a decrease in sales of approximately 2.5% compared to a year ago.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.54% from 6.15%.
Review our Buyers and Sellers ADVICE section to best position yourself in this transitioning market. Please continue sending us topics of interest so we can cover them in future newsletters. Thank you for reading!
Sincerely,
Dennis Adelpour and The Adelpour Group
California home sales stalled in September and hit the lowest level in nine months despite the lowest interest rates since spring, the California Association of Realtors announced last week.
September’s sales pace decreased 3.4% from the 262,050 homes sold in August and was up 5.1% from a year ago. The sales pace has remained below the 300,000-threshold for the past two years, while year-to-date home sales edged up 0.9% from the first nine months of 2023.
Los Angeles is still experiencing price appreciation even with a slight downturn in the number of sales. Homes that are beautifully redone, with great curb appeal and location are selling for record prices still! All entry level homes for a zip code are getting the most amount of activity while homes in the top tier of a zip code are finding that it's taking a little longer to sell. In some cases, sellers have had great luck under pricing their home purposefully to drive multiple offers. When done correctly, in the right market and with the right property - this pricing strategy many times produces the highest final net price for the seller.
Deferred maintenance is one of the top deal killers during escrow. When we represent a home that appears to have differed maintenance, we sometimes suggest a home inspection before finding a buyer so we can make those repairs prior to going into escrow. This saves a lot of time and money for the seller in the long run so it's definitely worth considering. Many buyers want to re-trade (renegotiate) the price once they get into escrow if they find repair items during inspections so best to address this upfront.
Do not wait to purchase if you can afford a home with the current rates. They have come down since the Summer highs and likely will continue to do so as the months proceed - according to many experts. Elections are right around the corner and I know many feel they want to wait until after the chosen president to make a move. Historically, a lot of our buyers find the best deals in November and December so this is a great time to see what type of deals are out there.
Check out the recent Redfin article we were featured in:
Build-To-Rent Homes: What You Need to Know About the Future of Single-Family Rentals
Build-to-rent (BTR) homes are ideal for people who want the benefits of community living without the hassle of maintenance, mortgage payments, or HOA dues. In recent years, the movement to create more of these types of homes has been increasing due to higher demand. Because of its rapid growth, many real estate companies and investors are developing BTR properties to capitalize on the craze.
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