Market Update February 2022
I saw an article in the LA Times (found here). It describes the real estate market throughout the Country.
Essentially, we are continuing to experience a much lower supply of homes for sale than the buyer demand.
Locally, I’ve been seeing this firsthand. I just put a home on the market in Laguna Woods. We held it open Saturday and Sunday, and had over 30 showings. There is already at least one and probably several other offers coming, most at or above the asking price.
The article discusses this issue, but also points up some very real concerns about the future of the market.
My take:
- We can expect a very strong sellers’ market to continue into the Spring. There has never been a better time to be a seller! You can expect high prices, minimal contingencies (no loan or appraisal contingencies, etc.) and very flexible buyers
- The market will change for two reasons:
- Increased inventory. We are already seeing a slight increase. As prices are going up, we will see this trend continue.
- Increased interest rates. We are already seeing slight increases that have not really affected demand yet
I’m often asked by buyers if they should wait for the market to cool. Will they get a “better” deal? The truth is, increasing interest will more than offset any price reduction. REMEMBER AT 0.5% INCREASE IN INTEREST ON A $700,000.00 LOAN IS THE SAME AS A $30,000 INCREASE IN PRICE!
As always, please think of us for all your real estate needs. You can reach us at 949-500-6365, Frank@FrankDiLauro.com, or through our website
