Dear Fellow Bel Air Crest Residents,
Happy Fourth of July….we are passing 2022’s half-way mark and we have seen so much happening since January 1. The world continues to spin on its axis, but it has also changed a great deal in the past few months. Every day brings something new and with it a challenge or two, but we will get through it and the real estate market will stay strong as well.
There is some good news…. especially about demand for loans which were on the rebound last week since interest rates have retreated from 2022’s high last week with smaller loan requests, hinting that home price appreciation may be cooling. According to a weekly survey of lenders by the Mortgage Bankers Association. purchase mortgage applications were up a seasonally adjusted 8% when compared to the week before. Mortgage rates have been on the
rise this year, after the Federal Reserve gradually withdrew the support it provided to the economy during the pandemic and began tightening monetary policy to fight inflation. So this may be a stabilizing factor in mortgage lending according to the Mortgage Bankers. I know for me, I will be refinancing my loan as it adjusts in November and I want to take advantage of the rates now, w. h is 4,75% for a confirming (under $989,000) 15-year fixed rate loan.
One of the positive outcomes of rising home prices that we have seen in the past few years, is that Americans have more equity in their homes than ever before. Total U.S. home equity increased almost 20% in the first quarter to $27.8 trillion, a record high, according to the Federal Reserve. The increase is another consequence of a red-hot housing market. Double-digit price gains have driven some would-be homeowners out of the market. At the same
time, rising home values are boosting the finances of the Americans who already own them.
Fortunately, we are seeing strong sales on the Westside even as interest rates rise — which do not seem to have the same impact as in other parts of the country. Bottom-line: Our business is strong on the Westside, and I expect it to remain so.
How has our fabulous community of Bel Air Crest fared this past quarter? Like the rest of the world, we too have had a few changes take place. As you saw in the recent letter our landscaping contractor of over 20 years gave us very short notice about the resignation of our contract with them. After a lot of due diligence on the part of our wonderful management team and the boards of all three HOA’s we were able to secure the services of Gothic Landscaping and to keep the majority of our past crew. Unfortunately, the change did affect an increase in the dues
for all three HOA’s. What has happened from a real estate perspective for the past quarter?
How has our fabulous community done this past quarter as compared to the second quarter of 2021? From a real estate perspective, the community as a whole has been somewhat somnolent, particularly in the Canyon home portion of the community. Currently there are no Canyon homes available for sale, which was the same for this time
period last year, and there is one (1) Custom home for sale as compared to three (3) last year. There are no homes in escrow currently, with one (1) Custom home in escrow last year, and as for closed escrows, we had one (1) Canyon
home and one (1) Custom home close escrow this past quarter, vs. one (1) Canyon home and three (3) Custom homes close escrow in the 2 nd quarter of 2021. Because of the shortage of inventory, particularly in the Canyon homes, the sale prices this year have been quite strong. I cannot say the same for the Custom homes as they are still healthy, but slightly soft. As always, price continues to be the HUGE determining factor into how quickly and for how much a home sells for.
Please feel free to contact me for ALL of your real estate need.