Los Angeles Real Estate Market Update - MARCH 2023
Recent data all points to an economy that remains more resilient than many feared, and a housing market that is showing signs of modest improvement. Sales of existing single-family homes in California edged up from the prior month, despite dropping sharply from a year ago. While recent pending sales statistics suggest continued improvement in home sales in the coming months. A renewed concern that the Federal Reserve will keep rates high has sparked a surge in rates and created a cloudier market outlook for the short term as mortgage rates rose for the third consecutive week in February.
According to the Mortgage Bankers Association, mortgage applications declined by 13.3% in just one week, so it appears the rise in mortgage rates is leading some potential homebuyers to pull back on their search for a new home. Most noteworthy was the forward-guidance that said no rate cuts were scheduled if the economy proceeds as currently forecast, so a more significant decline in mortgage rates is unlikely in the next few months.
Buyers, what does this mean for you? If you’re thinking about pausing your home search because rates have started to go up again, you may want to reconsider. This could actually be an opportunity to buy the home you’ve been searching for.
If you stay the course, you’ll likely face less competition among other buyers when you’re looking for a home. This is welcome relief in a market that still has so few homes for sale.
Sellers, what does this mean for you? Low inventory has kept days on market reduced and prices holding steady on the Los Angeles Westside. Some Sellers are still getting multiple over-asking offers and going under contract quickly, just as long as the properties are properly prepared and they are not trying to overreach when pricing their home.
For more information on how to properly prepare your Los Angeles, Pacific Palisades, Brentwood and Santa Monica home to get the highest price possible, give us a call at: (310)467-8042 / Michel@BronRealtyGroup.com