We are pleased to report approximately $50 million in closed sales & $17 million under contract in the first quarter of 2022. While we are excited about our record-breaking quarter, we would be remiss if we did not address the fact that mortgage rates are rising to curb inflation, hovering close to 5%, which WILL have an impact on home prices going forward. How much of an impact in Los Angeles? That will be determined in the coming months, as supply still remains low, and there is still a lot of cash in the buyer pool.
We predict that Q2 will be similar to Q1, with bidding wars continuing as buyers compete over low supply. However, with inflation on the rise and the almost certainty that The Fed will continue to raise rates, we believe price appreciation will slow down and the real estate market will normalize.
So what does this mean? NOW is the time to sell as we are still in a Seller’s market and will continue to be for the near future. Normalizing is not necessarily a bad thing, as double-digit appreciation every year is not sustainable. If you are a buyer, don’t fret. While the increase in interest rates in the past year from 3% to 5% is not insignificant, it is important to remember that rates are still historically very low. If you are looking to get pre-approved, we have connections to a number of lenders who are still providing incredible rates and products, BUT it won’t last forever, so we strongly recommend completing your pre-approval sooner than later.
As always, we are real estate advisors first, so give us a call or send us an email with any questions you might have.
Click HERE to read more in our April Newsletter.