Home buyers are not waiting to see what happens with interest rates.
In what almost defies odds, despite the Federal Reserve’s decision to raise their base interest rate in December, home buyers are finding that their purchasing power is at its peak with nearly historic low interest rates.
According to a recent study, home mortgage applications jumped by nearly 9 percent in January of 2016. Borrowers are clearly seeing the advantages of acting now, rather than sitting on the fence.
And why not? Home prices on average rose 10 and a half percent in 2015. This average includes both single family homes and condominiums sold in the Santa Clarita Valley. The median price of a single family home rose 8.1 percent, while condos rose on average 12.9 percent.
I think I’m ready to buy a house. What do I do first?
The best thing to do, of course, is to contact Montemayor & Associates, and we’ll get the ball rolling to find the right lender who can let you know what your qualifying home mortgage rate and amount may be. Yes, you should do this FIRST before you begin looking at homes. Continue reading
Mortgage rates will hold steady for the time being.
Slow economic growth over the summer has motivated the Federal Reserve to remain cautious, holding off on
proposed rate hikes for now.
National Gross Domestic Product (GDP) grew slower than expected over the summer. As such, the Fed has made plans to raise the rate of money borrowed by lending institutions in an effort to stave off runaway inflation, based on higher economic projections that have yet to be met.
Good News For Home Buyers
Interest rates have held at under 4 percent for the bulk of past year. As of the date of this article, mortgage interest rates are as follows:
- 30 year fixed-rate mortgage: 3.87%
- 15 year fixed-rate mortgage: 3.15%
- FHA 30 year fixed: 3.60%
- Jumbo 30 year fixed: 3.67%
- 5/1 fixed adjustable rate mortgage: 2.93%
Scarcity of rents along with high demand puts landlords in the driver’s seat. Is it time to take control of your destiny?
A recent survey from rent.com showed that property managers will hike rent prices on average by 8 percent by the end of the year. The same survey shows available rentals at a 20 year low, and nowhere is this fact made more prevalent by what’s available for rent in the Santa Clarita Valley.
As of the date of this article, the Southland Regional Association of Realtors Multiple Listing Service shows a total of 39 active rentals listed by real estate agents in the Santa Clarita Valley. These rentals make up available properties offered by owners that include single family homes and condominiums. It does not include privately managed or advertised properties outside the MLS.
According to the MLS reports, there are no single family homes available within the city of Santa Clarita that are under $2000. What does this mean? The answer is obvious. The number of available SCV rentals for sale is low, and prices are continually going up. Continue reading
2 bedroom, 2 bath single family home is perfect opportunity for first time homebuyer or investor.
Welcome to 25811 Sugar Pine Way in Saugus in the Santa Clarita Valley.
This is an incredible turn key home with an abundance of upgrades.
Plantation Shutters, wood flooring, and dual pane windows are only a few of the amenities available.
The kitchen has been upgraded with granite countertops and stainless steel appliances.
The large master bedroom comes with its own private bath and sliding door access to the back yard.
Another bedroom and bath are perfect for your growing family, or can be used as flex or office space.
This home is also ready for RV access, and is located in a desirable neighborhood close to great schools, shopping, parks and restaurants. For more information and to schedule a private showing, please contact us by calling wither of the numbers at the top of this page, or by using the Quick Response form below.Email Contact Form
Offered at $425,000
Large, 2 story pool home is ready for you and your family!
3 Bedrooms, 3 Baths. 1,635 Square Feet
Come and see this adorable 2 story home in the Circle J Ranch community of Saugus, in the Santa Clarita Valley.
With over 1600 square feet of living space, you’ll find its the perfect home for your growing family. Upgrades such as custom tile and wood flooring are wonderful touches in this turn key property.
Master bedroom comes with its own walk-in closet and private bath, and two more bedrooms are perfect for your growing family, or can be used as home office/flex space.
You’ll enjoy entertaining and relaxing in the back yard complete with large pool, spa, and plenty of room for kids to play safely.Close to award winning schools, parks, shopping, and commuter access, this is truly a great place to call home!
Offered at $560,000
Rumors that The Federal Reserve may raise interest rates have not affected the market…yet.
The market is in pretty good shape at the moment, with the recent jobs numbers from the Bureau of Labor Statistics bolstering confidence along many financial lines. Of course, this confidence may eventually lead an increase in inflation; something the Federal Reserve would like to avoid.
So how do we curb inflation as the nation’s economy improves? Many signs point to raising the base rate at which banks borrow money. In essence, this move trips a proverbial “breaker switch” with businesses and financial institutions, causing them to rethink their decisions on raising prices on goods and services. That being said, even a slight push upward in Federal rates will have an impact on the real estate market, even if it’s only temporary. Federal Reserve Chair Janet Yellen has hinted that rates may rise as early as September. Continue reading
There are plenty of benefits to paying cash for a home, but don’t overlook the opportunities that come with leverage.
One advantage, of course, is the fact that over time, your investment will grow in value. It can be safely said that real estate is one of the safest long term investments one can make.
That being said, you have a few choices as to how you’ll make that investment work for you. You can either pay cash for your home (Provided you have that kind of cash on hand), or you can finance. So which one is better?
Pros Of Paying Cash For Your Home
- The first, and most obvious, is that you won’t have a monthly mortgage payment
- You own your home outright, and are given title, as soon as escrow closes
- Escrow may close more quickly, as you have options to waive certain contingencies that are usually required when you obtain a mortgage loan
Lower interest rates over the past few years have saved homeowners a lot of money, but how long will it last?
For the past several years, the Federal Reserve has aided the real estate community by maintaining the rate at which banks buy their money at nearly zero. To be clear, this is the starting wholesale point for lenders who borrow money from the Federal banks, and not the borrow rate for home buyers.
That being said, these low interest rates have helped maintain the real estate market through the worst of the most recent economic recession, and many claim that this strategy was one that staved off a major real estate collapse.
The Pros of Low Interest Rates
Of course, it sounds like we’re stating the obvious. Low interest rates are ALWAYS a good thing, right? It helps borrowers increase their purchasing power when buying a home, and allows homeowners the opportunity to refinance their mortgages at a lower rate. This saves both buyers and refinancers a ton of money over the long term. A win-win, right? Continue reading
Yes, Spring is still in the air, but timing is everything when it comes to buyers and sellers realizing their real estate goals.
There’s been a lot of good news in the Santa Clarita real estate market lately. Not only have single family homes topped the $500,000 mark for the first time in 8 years, but interest rates are still holding below 4 percent…establishing what we might call a “win-win” scenario for both buyers and sellers.
While we’re still smack dab in the middle of Spring, many buyers and sellers “on the fence” should take this time to consider the fact that Summer is one of the best times to buy or sell. Why?
First of all, for the most part, kids are out of school. Parents find it much easier to move in between school sessions. Also, it is the time right after tax season that many renters are reminded of the potential tax savings as homeowners. Conversely, those who have received tax refunds have cause to think about investing it in something that will give them a long term return. Continue reading
3 bedroom, 2 bath home is located in the heart of Valencia.
Welcome to 25821 Turquesa Drive in Valencia!
This is a two story, three bedroom, two bath paired home located “behind Granary Square” in Valencia in the Santa Clarita Valley.
With over 1300 square feet of living space, it makes a great property for anyone who foresees a growing family in their future, or would just love to have some more room while living in one of the most desirable areas of Santa Clarita.
This home has upgrades throughout that include:
- Newer paint
- New dishwasher
- New kitchen faucet
- Tile backsplash in kitchen
- Wood flooring
- Recessed lighting
- Ceiling fans in all rooms
The large back yard comes with a covered patio and is perfect for entertaining friends and family. There is also a side yard courtyard area off the living room.
Located near many of Santa Clarita’s most popular places.
- Award-winning schools
- Granary Square shopping center
- Town Center Drive
- Westfield Valencia Town Center
- Valencia Marketplace
- River Oaks Shopping Center
- Santa Clarita YMCA
- Six Flags Magic Mountain
- Ed Davis Park at Towsley Canyon
- Placerita Canyon Nature Area
- Old Town Newhall
- Interstate 5 Freeway
- Santa Clarita Transit Center
- Metrolink Train Station
The interlinked paseo system gives you a safe way to walk or bike to several local parks and trails.
Contact us for more information and to schedule a private showing.
Listed at $450,000