It’s happening- Mortgages with rock-bottom rates.
COVID may have slowed everything down, but now, along with Los Angeles temperatures, the real estate market is heating back up.
There are a few reasons for this.
Please- let me explain.
Many sellers pulled their homes off the market this spring after stay-at-home orders took effect and fears over the coronavirus surged.
The week ending August 1 saw homes selling eight days faster than the same week in 2019. Experts say changing needs during the pandemic as well as interest rates could be factors in this pattern.
Bidding wars are increasingly common because, as the economy reopened, buyers reentered a market with a low inventory and cheap mortgages. The average rate on 30-year fixed-rate mortgages dipped below 3% for the first time on record. So the more people buy, the number of available homes has dropped as well, resulting in bidding wars.
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These are the markets that have recovered the most since the beginning of the COVID-19 crisis. A score of 100% means the market is performing the same as it was in January. Anything higher shows how much better it’s doing.
So, as you can see, Los Angeles is performing almost 9% above pre-COVID sales.
The strength of L.A.’s rebound indicates a market that just won’t quit. Now more than ever, the quality of life is important to people.
There is a desire of many city dwellers to relocate, knowing they can work from anywhere. Many companies are offering work from home capability now so that means you may have different needs while continuing your home search. You might be looking for a second office for your spouse or a larger backyard for your kids to spread out.
This is the time and the opportunity to buy a house!
A big trend to buy luxury homes with more space, away from dense urban areas, is also taking hold across the country. Los Angeles has pivoted sharply into luxury, more than any market. People are looking at “compounds” for their families to feel safe and protected.
In Los Angeles County, the number of contracts signed for homes over $2 million was up 34% year over year. L.A. residents are looking for houses in which they can hunker down for the long haul.
Virtual tours have become so effective for us real estate agents. Many people are buying houses completely sight-unseen with the help of virtual 3D tour technology, part of a tectonic shift that we expect to play out for years to come.
The Matterport 3D camera is made specifically for real estate.
After speaking with a few of my clients I’ve also observed a huge surge in people wanting to move back to where they grew up to be closer to loved ones… or the opposite. Moving their parents or family members out of solitude and into sunny warm Socal.
I’ve noticed a saturation of new homes coming on the market every day, in all conditions and at all price points.
If you are thinking of making the move and diving into a Los Angeles home, the time is now. Contact The Shelhamer Group and we can quickly and easily get you preapproved with one of those low-interest-rate mortgages. If you would like more information or a tour of any of these homes please contact Us at 310-913-9477 or SEND AN EMAIL!
Listings provided by FRANCA PORRAS, SUSAN MILLER, TRACY DO & RUNJING CHEN
Whitney is a residential real estate specialist at The Shelhamer Group with offices in Los Angeles, CA. She has years of experience in buying and selling with a multigenerational family real estate business by her side. During her downtime, she can be found cooking up a vegan feast for all her friends or playing with her two fur babies in the park next to her condo.
Based on information from the / Association of REALTORS® (alternatively, from the /MLS) as of [date the AOR/MLS data was obtained]. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.