APRIL MARKET NEWS:
The average sales price for March 2017 was $586,481. January had a massive spike in home values with an average sales price of $597,549 in Downey and surrounding areas (Full list of cities included in this graph below). This being the case, looking at this graph there are 2 outcomes here.
- Home values will begin to level off due to rising interest rates. Rising interest rates will give buyers less buying power so sellers, at least in the $400,000-$600,000 price range may see fluctuations in what they may be able to get.
- Lack of inventory will still cause prices to continue to steadily rise. Southern California is one of the most desirable places in the world to live in. Since population continues to rise in this area and no new homes are being built on a consistent level (other than the Inland Empire), values in Downey and Surrounding areas including North Orange County and South East Los Angeles will continue to hold their value and even continue to rise.
WHAT WE ARE SEEING IN THE STREETS:
Being at our open houses, talking to many buyers out there on Zillow and Trulia.com, communicating with prospects that reach out to us through our for sale signs and advertising, we get a great feel for what is taking place in our local markets. Most buyers in our market are not coming in with a ton of cash to buy homes. There are 3 types of buyers out there.
- The buyer that is a first time home buyer wanting to buy with an FHA 3.5% down loan or a conventional loan at 5% or 10% down. These buyers are usually buying between $400,000-625,000
- The move up buyer. They live in a 2 or 3 bedroom home now, their family is growing and they are buying a larger home using all the equity they have on their current home to move to a pricier home. Anytime you upgrade you will always have a higher payment so all buyers in this category need to understand that before deciding to make a move. Depending on how much equity they have on their current home, these buyers are usually buying between $650,000-$900,000
- And then there is the cash buyer. Most cash buyers want a deal. They don’t want to pay top dollar for a home so in the homes that more commonly get financed (Anything under 1 million dollars) a seller would probably rather sell to someone obtaining financing then get less money for their home and take a cash offer. Unless of course they NEED to sell fast for whatever reason.
Even though interest rates will continue to rise we feel that the market is very strong and stable. Unemployment isn’t what it was at in the recent past. The economy is stronger than before although we know that at any moment things in the country can take a turn for the worst. As far as homeownership is concerned for the average family, real estate is holding strong so we continue to see a steady rise in prices in the foreseeable future.
OPEN HOUSE
SATURDAY & SUNDAY
APRIL 22/23 12P-4P
Have you RSVP’d for our Open House Event for this weekend? Let us know you are coming by clicking the link below and sending us your information. Hope to see you this weekend.
APRIL MARKET NEWS:
The average sales price for March 2017 was $586,481. January had a massive spike in home values with an average sales price of $597,549 in Downey and surrounding areas (Full list of cities included in this graph below). This being the case, looking at this graph there are 2 outcomes here.
- Home values will begin to level off due to rising interest rates. Rising interest rates will give buyers less buying power so sellers, at least in the $400,000-$600,000 price range may see fluctuations in what they may be able to get.
- Lack of inventory will still cause prices to continue to steadily rise. Southern California is one of the most desirable places in the world to live in. Since population continues to rise in this area and no new homes are being built on a consistent level (other than the Inland Empire), values in Downey and Surrounding areas including North Orange County and South East Los Angeles will continue to hold their value and even continue to rise.
WHAT WE ARE SEEING IN THE STREETS:
Being at our open houses, talking to many buyers out there on Zillow and Trulia.com, communicating with prospects that reach out to us through our for sale signs and advertising, we get a great feel for what is taking place in our local markets. Most buyers in our market are not coming in with a ton of cash to buy homes. There are 3 types of buyers out there.
- The buyer that is a first time home buyer wanting to buy with an FHA 3.5% down loan or a conventional loan at 5% or 10% down. These buyers are usually buying between $400,000-625,000
- The move up buyer. They live in a 2 or 3 bedroom home now, their family is growing and they are buying a larger home using all the equity they have on their current home to move to a pricier home. Anytime you upgrade you will always have a higher payment so all buyers in this category need to understand that before deciding to make a move. Depending on how much equity they have on their current home, these buyers are usually buying between $650,000-$900,000
- And then there is the cash buyer. Most cash buyers want a deal. They don’t want to pay top dollar for a home so in the homes that more commonly get financed (Anything under 1 million dollars) a seller would probably rather sell to someone obtaining financing then get less money for their home and take a cash offer. Unless of course they NEED to sell fast for whatever reason.
Even though interest rates will continue to rise we feel that the market is very strong and stable. Unemployment isn’t what it was at in the recent past. The economy is stronger than before although we know that at any moment things in the country can take a turn for the worst. As far as homeownership is concerned for the average family, real estate is holding strong so we continue to see a steady rise in prices in the foreseeable future.
OPEN HOUSE
SATURDAY & SUNDAY
APRIL 22/23 12P-4P
Have you RSVP’d for our Open House Event for this weekend? Let us know you are coming by clicking the link below and sending us your information. Hope to see you this weekend.