What’s been going on in our summer real estate market? Find out right here.
As the temperatures outside have begun to heat up, so has the real estate market. Here are the latest statistics from our Southern California real estate market:
With interest rates at the lowest levels that we’ve seen in the past two years, hovering right around 4%, now is really a great time to take advantage of the market. Buyers are anxious to snap up properties and take advantage of locking in low-interest rates. In turn, sellers are interested in taking advantage of that demand.
Last winter, interest rates almost reached 5%, so our current rate climate provides some pretty significant savings by comparison. In general, home prices have remained relatively flat over the last year, having only gone up about 1% year over year.
The market may have slowed price-wise, but demand has been increasing this summer due to the low-interest rate environment. But who can take advantage of these low-interest rates?
If you currently own a home and your interest rate is higher than 4.5%, you may find it worthwhile to explore a refinance. If you purchased a home in the last couple of years using an FHA loan, your equity may have increased to the point where you could be able to refinance and finally get rid of your private mortgage insurance. Doing so could allow you to lock in a low rate for many years to come.
Of course, first-time homebuyers can take advantage of these rates, as well. With prices having leveled off last year, there are some great opportunities for buyers.
Sellers who plan to move up or downsize will find great opportunities, too. If you’re downsizing to a smaller home, your current home may be in high demand right now, meaning that you can get top dollar for your home. If you need a loan to make your transition, you can do so at a much lower rate. If you plan to pay with cash, that’s even better.
With this 1% drop in interest rates, move-up buyers can save thousands of dollars over the years. Additionally, investors who aren’t planning to pay with cash will find the perfect opportunity to increase their cash flow.
If you have any questions about whether a move is right for you or about any of your real estate needs, please feel free to reach out to me. I look forward to hearing from you soon!