Southern California Home Sales Hit High In August
Record growth year over year in home sales, although prices are beginning to level off.
According to the real estate information firm DataQuick, home prices rose nearly 25 percent in August of 2013 compared to prices reported one year earlier. There was better news for Los Angeles County, who saw home prices rise 28.1 percent.
We’ve spoken in depth about the changes in the market in previous articles. The recovery of the real estate market being in full swing, combined with what is still considered a low inventory level for available homes for sale, has added many levels to the meaning of “Supply and Demand.” Historically low interest rates offered earlier this year motivated many buyers to make the decision to purchase property, and many sellers enjoyed multiple offers on their homes; many above the original asking price.
Home sales are leveling off. What will this mean for the real estate market?
We’ve also discussed recent shifts in the market. Yes, mortgage rates did jump beginning late spring, but they are still incredibly low (Still at below 5 percent), although the approximately 1 percent bump in rates that took place over the summer may have discouraged a few buyers, it hasn’t stopped those who are truly ready for home ownership. Remember, your loan rate is only part of the home purchasing equation. When thinking about buying a home, take into consideration the long term benefits of property ownership coupled with rise in equity and the value of the home you will own.
There are several factors aside from interest rates that can affect the reasons why home sales level off. Home sales are cyclical. Summer is a hot time (No pun intended!) for buyers, especially those with families, who want to make sure they are settled in before school starts. In many cases, buyers have more time to spend shopping for homes during the summer compared to other times of the year.
Buyers can take heart in knowing that the leveling off of home sales may open doors for them on selection and buying power. Residential inventory for sale has been tight all year. With homes remaining on the market even just a little while longer, buyers can look forward to making solid choices as to the home on which they wish to make an offer. In some cases, they may be able to negotiate terms and maybe even prices, depending on how long the home has been on the market, and the motivation and needs of the seller.
The Elgin & Pilar Walker Team are your real estate advocates.
Whether you’re buying or selling, the Walker Team has over 25 years experience in the real estate industry, and will provide you with solid answers and options.
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