First-time homebuyer Diale Ebewele found the perfect Tarzana condo in just six weeks. He locked a 4.99% interest rate putting just 5% down, or $19,750, on a $395,000 sales price. Escrow closes Monday for my client.
Yes, affordability is being offset by the run-up in home prices over the last three years, the rise in the cost of living and this year’s 2 1/2-point jump in mortgage rates. Recession fears, collapsing consumer confidence and the prospect of plunging property values are driving many would-be buyers to the sidelines.Patrick Veling, CEO and President of Real Data Strategies offers sage advice for homebuyers.
3) Mortgage rates under 3% were a gift from God, likely never to be repeated in our lifetimes. Today’s rates are inexpensive historically, and inflationary pressures are likely to drive the cost of money even higher in the near future. That’s good for home shoppers. With more than 32,000 Southern California homes for sale this month, listings are at their highest level in more than two years, according to Steven Thomas, chief economist at Reports on Housing.
Potentially higher property taxes would be another tough pill to swallow for homeowners thinking about selling.