I remember when I first got into real estate and I would hear my mentor talk about why it was such a great time to sell one minute and a great time to buy the next. My skeptic nature (my husband calls me the ‘truth police’😂) caused me to have a hard time with that. How could it be both?!? Seemed salesy to me… But what I’ve learned since then is that the best time to buy or sell is whenever you are ready to buy or sell. The market dynamics matter and you want to be informed on the current reality before making any big financial decision, but ultimately it comes down to your own personal needs and goals. 

The market is interesting right now, as demonstrated by the inconsistency in the market snapshots below. Inventory is slowly ticking up overall, but most areas of LA are still what would be considered a seller's market based on the current absorption rate (calculated by looking at the rate in which the available inventory is being sold). It appears the rise in inventory is more about a decrease in buyer demand causing listings to sit a bit longer on market, vs. a significant increase in sellers.  And the great homes that are well price and well presented are still selling quickly for high prices (yes, we’re still seeing some go for $100,000s over ask).

Nationally, Mortgage applications to purchase a home fell 13% last week compared to the week prior and were a steep 37% lower year over year. This is not surprising given the drastic increase in rates. But with two-thirds of mortgage holders currently having a rate below 4%, do you think those folks will be rushing to sell right now? 

Most people are predicting interest rates will continue to move upwards, but that the rate of increases will slow. I think this will allow buyers to adjust to the new normal and come back into the market now that the insane competition and runaway price increases of the last two years have tempered. Our inventory in LA will likely stay very tight as we have a lot of homeowners that don’t need to or can’t really afford to sell, and very little net new inventory being built to keep up with the many people who want to live here and own property here. I expect this to help keep prices fairly stable, despite economic headwinds. 

But like I said, it really comes down to each individual would-be buyer or seller’s personal circumstances and objectives. So, if you are considering a move any time soon, let’s chat about it!