Learn how the current market impacts your buying and selling decisions.
Are you thinking about how the real estate market is shaping up this year? With the year halfway over, I wanted to share some insights about what we're seeing in the real estate market.
National Market Overview
- Mortgage rates remain high. As of early July, the average 30-year fixed mortgage rate stood at 7.36%. Although this is a slight decrease from 7.79% last October, it’s still high enough to deter potential sellers from letting go of their lower interest rates. Buyers, on the other hand, face affordability challenges. While experts expect rates to eventually fall, the process will be slow as the Federal Reserve continues to monitor inflation.
- Home prices are at an all-time high and appear unaffected by high mortgage rates. According to the National Association of Realtors, median existing home prices have increased by 5.8% over the past year. This marks the 11th consecutive month of year-over-year price increases. The NAR's chief economist, Lawrence Yun, recently noted that prices are expected to remain firm and not decline on a national level.
"As of early July, the average 30-year fixed mortgage rate stood at 7.36%."
Local Market Insights
In our local markets, we're seeing similar trends. Here’s a quick snapshot:
Long Beach:
- June 2023: Average sales price was $882,000.
- June 2024: Average sales price increased to $910,147 (3.17% increase).
Los Angeles County:
- June 2023: Average sales price was $1,228,000.
- June 2024: Average sales price increased to $1,288,000 (4.89% increase).
Orange County:
- June 2023: Average sales price was $1,380,000.
- June 2024: Average sales price increased to $1,483,000 (7.5% increase).
Market Movement
The average days on the market (DOM) is a key indicator of how quickly homes are selling:
- Long Beach: The average DOM dropped from 26 days to 24 days over the past year.
- Los Angeles County: The average DOM slightly decreased from 28 days to 27 days.
- Orange County: The average DOM decreased from 23 days to 20 days.
Overall, homes are still selling quickly if priced correctly. If a home lingers on the market, it might indicate that the price is too high. Once adjusted, homes tend to sell relatively quickly.
If you have any questions about your home's value or the market trends, feel free to reach out to me at (562) 316-2915 or [email protected]. I look forward to hearing from you!
