Our market has ‘opportunity’ written all over it. Mortgage interest rates have dropped down to 3%, a historically low mark. These low rates give today’s buyer the ability to afford more home than they could in the past. According to the National Mortgage News, buyers’ purchasing power has increased by $32,000, meaning the average buyer can afford $32,000 more than they could just last year. Of course, this gives the buyer more choices when it comes to finding and financing their next home.
The biggest perk for sellers is the low inventory. There are just not enough homes available for sale to meet the high buyer demand. According to the National Association of Realtors, housing inventory is down 20% from a year ago today. Housing inventory has been a problem for a while now, but these favorable interest rates have amplified demand, making it increasingly difficult for buyers to find what they’re looking for on the market. Sellers face little competition and can benefit from buyers who are trying to outbid one another for their homes.
All the multiple-offer scenarios push home prices even higher. Sellers in today’s market could potentially profit more than they’ve been able to in the past. They’re also way more likely to sell their home quickly.
So whether you’re thinking about buying or selling a home soon, great opportunities await. Call me if you have any questions about market conditions or real estate in general. I’m always here to help, and I would love a chance to chat with you!
It’s more affordable to buy a home today than it’s been in a very long time. When I first got into the real estate business in 1982 I worked for a small mortgage company, and we did FHA, VA, and conventional mortgages. Interest rates at that time were between 16% and 17%, and home prices were quite a bit lower. Today we have higher home prices, but it’s a great time again to sell, refinance, and borrow money because we have historically low interest rates.
For example, to borrow $300,000 today at 3.03% (and rates are actually lower now) your mortgage payment would be $1,270 per month. Compare that with the 1970s, when you’d have to pay about 8.86% and it jumps to $2,284 per month! Renting a 3-bedroom, 1-bathroom house in this area would cost you between $3,000 to $3,500 per month (maybe more). You can see that buying a property makes more sense than renting.
Other benefits of owning a home include mortgage deduction, future appreciation, and security. If you’re a homeowner, check into it and see if now’s a good time for you to refinance. If you’re considering buying and want to know what it would take to buy in today’s market, I can connect you with a lender I work with, he can get you pre-qualified, help you find what your price range is, and then I can help you find a house that suits your needs.
Please call or email me if you have any questions about buying a property or real estate in general. I would love to help you.
We’re in a seller’s market here in Long Beach.
As we make our way through the summer of 2020, our low interest rates and a lack of available homes are driving our Long Beach market.
In the Long Beach area, the average home price is approximately $675,000, which is a 5.6% increase compared to last year. We’re in a seller’s market, which means there aren’t enough homes to meet the buyer demand. It’s not uncommon for homes coming on the market to receive multiple offers. This competition allows sellers to accept offers over list price, often within the first week or two.
Even with the high demand and lack of inventory causing prices to rise, I’m still asked quite often whether the coronavirus will cause prices to eventually drop like they did during the 2008 housing crash. As you can see in the graph at 1:23 in the video above, most major economists predict price appreciation over the next two years. Furthermore, they expect the strength of the housing market to lead us out of the economic slowdown.
The bottom line: if you’re a seller looking to get top dollar for your home, now’s a great time to list. If you’re a buyer, now’s also a great time to buy due to our low interest rates.
If you have more questions about our Long Beach market or there’s anything else I can help you with, don’t hesitate to reach out to me. I look forward to speaking with you.
Those who live in Long Beach may not realize a Japanese wonderland is hidden close by. On the campus of California State University, Long Beach sits the Earl Burns Miller Japanese Garden. This space of tranquility and peaceful beauty creates the perfect area to unwind and embrace the glory of nature.
Mrs. Loraine Miller Collins gifted the land in honor of her late husband. The widow described her hopes for visitors to the Japanese Garden, “When a person is tired, or anxious, or in a quest of beauty may they enter and come forth refreshed to meet the problems of the day.” Carefully designed, the garden showcases multiple species of trees. A vast collection of Liquidambar, Sweetshade, Birch and various Pines all lend to the delightful sights. Bamboo stands proud and tall as Magnolia blooms reflect prettily in the pond. Picturesque wooden bridge provide paths to stroll and ponder.
Special events often rich in culture occur at this serene Long Beach property. And as Autumn leaves drop it becomes time for the Fall Sekku Traditional Tea Ceremony on October 16, 2016. Those in attendance for this formal ceremony will have the opportunity to whisk powdered tea and indulge in some treats. The online calendar lists other upcoming occasions that enhance a trip to the Earl Burns Miller Japanese Garden.
Garden gates are open to the public Tuesdays through Fridays at 8 a.m. to 3:30 p.m., and on Saturdays from 12 to 4 p.m. It is closed Sundays and Mondays.