Real Estate Trends
Forecasts for a slow 2016 real estate season have been greatly exaggerated.
Late last year, some financial analysts worried that a rise in the base interest rates by the Federal Reserve would trigger a reversal of fortunes in the real estate industry. Rates would rise, loans would be harder to get, houses would begin to languish on the market, and home prices would drop.
However, that turned out to not happen…at all!
Interest rates, while bumping back and forth between a few fractions of a percentage point, are still holding below 4 percent, despite the quarter percent rise in the base rate the Federal Reserve implemented in December. Continue reading
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
Despite the Federal Reserve raising their interest rates, home loan prices are at an almost record low.
Interestingly enough, there was potential “doom and gloom” on the horizon as spelled out by some analysts late last year in light of the Federal Reserve’s decision to finally raise the rate they charge lenders to borrow money.
You’d think then, that mortgage rates would instantly rise as a result, right? Wrong!
In fact, 2016 has begun with home loan interest rates once again hovering near record lows. Having dropped below 4 percent, home owners, buyers, and sellers are taking advantage of what may be an “extended reprieve” from rising rates. Continue reading
Lots of economic indicators left “in the air” as we near the end of 2015 gives pause to speculation about the real estate market.
As we hurtle toward the final month of 2015, we’re seeing some interesting signs in the Santa Clarita real estate market. Interest rates, while still very low, have inched just above 4 percent, and housing prices for both condos and single family homes have leveled off.
That being said, it’s not unusual for housing prices to dip slightly in the final quarter of the year, with the summer buying season behind us and the holidays just ahead. The question still remains, however: Have Santa Clarita home prices reached their peak?
To be clear, prices have only dipped slightly between September and October of this year. The median price of a single family home still holds firm at the half million dollar mark, and condos are averaging prices in the low $300,000’s. We’re nowhere near the peak we achieved in the Spring of 2006, when single family home prices averaged $643,000 before they began to fall at the outset of the recession which began a year later. Continue reading
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
As we head dead on into summer, SCV home prices are holding their own.
Can you believe it? We’re halfway through 2015. With that, we’ve seen the Santa Clarita real estate market continue to push forward in a positive fashion. Interest rates are still holding just over 4 percent, and the buyers are out there ready to realize their dream of owning a home.
Recent statistics from the Southland Regional Association of Realtors showed the median price of single family homes and condominiums remained basically the same from May to June of this year. Condo prices did not budge, while single family home averages dropped by a few thousand dollars to a median price of $521,000. This type of fluctuation is not unusual, and is typical of the overall Santa Clarita marketplace during the summer months. 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
Low interest rates and an improving economy does not necessarily mean you can price your home as you choose.
Fair Market Value, or FMV can be quite the moving target, based on continually changing conditions in the real estate marketplace. Like stocks, bonds, and other investment items, real estate falls under that FMV category as well.
So what is “Fair Market Value?” Quite simply, it’s the price that one is willing to pay for an item based on several value conditions. For real estate, it’s location, demographics, size, amenities, and honestly, what other similar properties have sold for.
For example, if you have a 1,500 square foot three bedroom, 2 and a half bath home on a 6,000 square foot lot in Valencia, we’d begin to analyze recent sales of similar homes first in your tract, then perhaps we’d broaden the parameters a bit to see what homes sales were in surrounding neighborhoods for comparison. Continue reading
It’s a great time for both home buyers and sellers in the Santa Clarita Valley.
First of all, with available housing inventory on the lower side of nominal (somewhere in the mid 500’s), most sellers are confident that they can sell their home relatively quickly at market rates, which climbed nearly 15% in 2014.
Mortgage rates have bumped up (very) slightly, but are still well below 4 percent, which is great news for both buyers and sellers? Why is it great news for sellers? Well, for the most part, many sellers turn into buyers once they have their home in escrow, so the “win-win” is in full effect. Homeowners are excited as well, being able to take advantage of lower rates to refinance to a lower monthly mortgage payment, or access equity to make home improvements or other investments. We’re continuing to see mortgage loan applications jump as a result of low interest rates. Continue reading
Many positive signs point toward an economic boom. How will this affect real estate?
We’re also seeing better national economic growth, lower unemployment, and in many ways, good feelings for the New Year.
Real estate has also seen some good news in the past 12 months, with continued growth in equity for both single family homes and condominiums in the Santa Clarita Valley. Can we expect this to continue?
Of course, with positive growth in the economy comes the other side of the proverbial “money coin” in the form of potential inflation. We’re seeing signs from the Federal Reserve that they are doing everything to keep this in check so that we can continue to transition from economic recovery to economic boom.
One concern on everyone’s agenda is the possibility of rising interest rates. So far, the Fed hasn’t moved one way or another. In fact, interest rates have dipped to a 20 month low, giving may potential home buyers encouragement to get “off the fence” and into a home. Continue reading