Real Estate Market Update So Cal

Giving a Market update on where we are at with rates and prices in So Cal and answer the question, “Are we at the top of the market?”

Teresa Tims has been doing these Market Updates since 2000 and haven’t been wrong yet?. I have sold property at the very top of the market and known when to buy it at the very bottom.

Rates have gone up A LOT and it’s not really being reported how much they have gone up. A full Percent for some loan products. This has pushed many refinances into a no make sense Zone.

For example a Conventional 3% down that was pricing out at 4.25% is now pricing out at 5.25%. The rate increase has also affected purchases because of diminished purchasing power. However in the affordable market 250-450 we so no slowdown or hesitation from buyers and Sellers enjoy multiple offers.

We are not at the top of the Market. People can still afford 30 year fixed payments. People are back to work, households are making more money than pre-crash. The shortage of labor in most segments is boding well for most as wages are the highest they have ever been. For most the outlook is good to great in terms of future growth and wealth.

I AM concerned about the rates going higher as this will only bring out the products that got us into trouble last time. With the rates being so much higher now I think it will make way for private investors to offer short term profit taking mortgages for self employed people. When that product comes out the market will explode.

I’m pretty certain we have another 2-3 years of home prices increasing. Then it will crash all over again. Ask the old timers, it works the same every time.

1st time buyer programs are offering a lot of bang for your buck since they raised the income limits to qualify in the upper 100’s. Instead of having to earn no more then 75k to qualify. You can now earn 175 and get in for 2-3K total move in.

If you are looking to buy or sell in Southern California call me at 909-920-2500.

I am happy to help and get you in the right program!