Dear Fellow Bel Air Park 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, which 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 almost20% 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 is the fabulous community of Bel Air Park doing from a real estate perspective, particularly as compared to the 2nd quarter in 2021? Basically, the stats are similar to that of last year. Currently, there is one (1) home available for sale, vs. none last year. For both years there were no homes in escrow, but as far as closed escrows go, both years show one (1) closed escrow for the quarter. As far as price appreciation is concerned, prices have been very healthy, and the projections are that they will continue to do so.
Please contact me for ALL your real estate needs – Carole Schiffer, 310 442-1384 –