Wait... was that it?!? Did we just see the bottom of the housing market correction?!? After a super slow 4th quarter, we are seeing lots of positive signs in the market as we wrap up the first month of 2023:
- There was a 25% increase in weekly mortgage applications two weeks ago, and an additional 7% increase this past week.
- Mortgage rates continue to move down to 4-month lows. I have seen 30 yr fixed quotes in the 4s!
- There’s an increase in buyer interest, open house traffic, and multiple-offer situations.
- In the last quarter of 2022, 42% of sellers were giving concessions to buyers at the closing table, a 10-year high.
- Home builder sentiment improved for the first time in 1 year.
- Pending closings were down 30+% at points in the fall, but over the last few weeks we have seen pending listings in most of our markets nearly flat year over year. Properties that were sitting and sometimes reduced several times, are now under contract.
- And for those of us in LA, the sun is back! I mean, how could you expect people to buy a house in the RAIN?!?!
I know I sound like a broken record, but it comes down to supply and demand. And we still don't have enough good houses for all the people that want them! Especially in LA!
Areas of opportunity still exist for buyers willing to look at the less picture perfect homes, those that need a little TLC, or aren't priced / presented well enough to garner lots of interest.
We are also approaching the April 1st implementation date of Measure ULA, a.k.a. the Mansion tax. So luxury buyers may have an opportunity to negotiate with sellers who are incented to close prior to that date!
I still haven't found a reliable crystal ball, but what I'm seeing, reading, and hearing these last couple of weeks is positive and I am excited to keep helping buyers and sellers navigate the market to accomplish their goals!
