April is a time for ‘foolery’, showers, and taxes. And as we move into the 2nd Quarter of 2017, we are also seeing political waters roiling across the county and the big question within the real estate industry is: Will politics cause a paralysis in the U.S. economy and affect our markets? So far, it doesn’t appear it will. Strong job growth and consumer confidence its highest in 16 years, the real estate market for long-term interest rates has gone down in the second week since the Fed raised interest rates in mid-February.
The 10-year T-note has moved from 2.62% to 2.40%, taking mortgages from just under 4.50 percent back to 4.25 percent….and many predict this is just a pause before the next Fed hike. But according to economists, the impact of current political games will not be felt for some time in the marketplace.
There is more good news I can point to — home equity continues to strengthen as prices accelerate toward previous 2007 highs, enabling homeowners to gain back some of their lost equity. Of the hottest markets in the US which have the lowest rates of negative equity, California has three of the top five — Los Angeles, San Francisco, and San Jose. This is good news for housing overall. Getting out from underwater doesn’t just benefit the homeowners involved; it also helps the market as a whole. We are still dealing with very low inventory across the board and it is impacting values as well. Because buyers want to take advantage of the lower interest rates, there is a strong and large pool, without a lot for them to pick from. This is creating a situation of multiple offers, which in many cases drives prices up, and unfortunately prices out first time buyers. Flat out, we need more inventory, particularly as we begin the “spring selling season”. I can help you sell your home. Please let me help you in analyzing your options in this interesting and somewhat challenging market… call me at 310-442-1384.
I am very proud to announce that, for the 20th year in a row, NRT, (Coldwell Banker’s parent company) has been ranked the #1 residential real estate brokerage in the nation in both closed sales volume and closed transaction sides by REAL Trends 500. NRT closed 337,780 transaction sides and had more than $166 billion in closed sales volume in 2016 – more than the next four largest competitors combined. It pays to work with a winner, call me!