Onward and Upward ↗
For the first time in half a year, there is some good news trending about the real estate market. Pending home sales in December went up after a six-month downturn, and the National Association of Realtors announced on January 27 that mortgage application rates are on the rise*. This is great news for anyone looking to buy or sell their home and signals a hopeful sign of a return to a more customary marketplace. In fact, this week the 30-year fixed-rate mortgage fell to 6.13%^, and the CEO of Compass stated, “For the first time in ten months, all the statistics I look at are trending positively.” Welcome news as we finish up the first month of the year…
What does this mean for me?
As the recent decline in interest rates help to stabilize the market, other indicators including the job market and inventory levels continue to be factors in determining the current real estate climate. Here in the South Bay, a lower home pool creates higher demand from buyers and puts sellers in the drivers’ seat. With inventory expected to increase as we see interest rates decline, now is a good time to get a jump on your real estate goals for 2023.
What are the predictions for the rest of 2023?
“The recent low point in home sales activity is likely over,” says NAR Chief Economist Lawrence Yun, who also predicts that “The new normal for mortgage rates will likely be in the 5.5 to 6.5% range.” * With weekly mortgage applications up by 25%, we are hopeful that these indicators continue and lead to a more stabilized environment. The real estate market is always changing, and it’s important to do your research and consult with a real estate expert before making any investment decisions. Please give us a call at (310) 372-2200; we will put you in touch with one of our experienced, knowledgeable agents to help you gauge your best strategies going forward and achieve your goals in 2023.
