Los Angeles Real Estate Market Update - APRIL 2023
By now, seeing inventory fall every week is no longer a surprise... even though it’s April, when we’d normally expect inventory to be increasing each week as the peak home buying season is almost upon us. But this year, sellers are holding back. A limited housing supply is making it difficult for buyers to find available properties that meet their criteria. This has led to increased competition among buyers, driving up the prices of available homes on the Westside and elsewhere throughout the county.
The Fed enacted its ninth rate hike since March 2022 but hinted there might only be one more to come before the end of the year on the other hand, the Silicon Valley Bank failure somehow resulted in mortgage rates sliding down for the second consecutive week (week of March 27th) and reached their lowest level in a month. This has motivated many buyers to come off from the sidelines as mortgage applications increased for the third week in a row.
According to Freddie Mac’s weekly Primary Mortgage Market Survey® (PMMS®), the 30-year fixed-rate mortgage (FRM) averaged 6.42% as of March 23, 2023, down more than 30 basis points from its most recent peak at the beginning of March.
Despite the challenges, industry experts predict that the California housing market will continue to stabilize in the coming months, with prices gradually finding their bottom later in the year. While interest rates are not expected to remain low for long, buyers are encouraged to take advantage of the current window of opportunity and enter the market before prices start to rise again.
Overall, the California housing market is in a state of flux, with both buyers and sellers navigating through uncertain market conditions. However, with the continued support of favorable interest rates and increased housing supply in the future, the market is expected to find its equilibrium, providing opportunities for both buyers and sellers alike.