Dear Mountaingate Neighbor:
March came in like a pussy cat with little rain fall, and we are limping forward, hoping April “showers” really do arrive We do need the rain as drought has again gripped our state, with water reserves dwindling to dangerous levels. Rationing is most likely on the way.
As the war in Ukraine continues to overwhelm the world, on the home front, we are continuing to see rising inflation, gas prices, and now interest rates. The Federal Reserve recently increased interest rates, and we are now seeing mortgage rates nearing 5% level, which causes concern especially with first-time buyers. However, the share of millennial home buyers has significantly increased over the past year, with 43% of buyers in the age range (21 to 41 years), which is up from 37%. But overall, existing home sales feel in February 7.2%, continuing a pattern of ups/downs over the past few months.
According to the National Association of Realtors, housing affordability continues to be the major challenge. But in our market, the lack of inventory is really challenging buyers as home owners are reluctant to move during these high inflation times, compounded by the unknowns brought about the war in Ukraine.
With us now entering the 2nd quarter, I continued a strong sales year that I experienced in 2021, and yes, inventory also remains a challenge for all buyers. We are continuing to see multiple offers on all price points. I recently assisted one of my mentees with writing his first buyer offer on a condo in Playa del Rey which was listed in the lower sevens, and ended up with 9 offers, probably selling over $800,000!
In looking at the comparison in real estate activity between this past quarter, and that of last year, the numbers bear out what everyone is saying about the lack of inventory. Currently, there is one (1) home available for least vs three(3) last year. We have two (2) homes in escrow now and five (5) last year including one (1) private sale.
This reinforces all of the conversation about no inventory. We need more inventory! If you are at all considering selling your home, please do let me know, I have a long list of buyers for a number of different properties in Mountaingate.
email@example.com, 310 442-1384 or firstname.lastname@example.org
Looking forward to speaking with you soon.