Los Angeles has been a seller’s market for many decades, as more and more professionals have moved to the area. But in the last year, mortgage rates have soared, so some people have been priced out. If you’ve been Googling “real estate agents near me,” you might be wondering whether this is still a good time to buy or sell in Torrance, CA. Let’s have a look at how the changing mortgage rates have altered the LA real estate market.
What Do Changing Mortgage Rates Mean for Buyers and Sellers in Los Angeles and Torrance, CA?
In Los Angeles, there are many more people than homes available, so there is a constant demand. Despite this, the market has cooled down a little due to the rise in mortgage rates. There are fewer buyers and sellers, and many properties now take two months to sell instead of 30 days or less.
Because there are no longer as many bidding wars as before, most properties are sold at the asking price or even slightly below it. But this doesn’t mean that now isn’t the right time to buy or sell. It all depends on your individual situation.
It Costs More to Borrow Money
It goes without saying that you’ll have to pay more to borrow money now that mortgage rates are higher. This is a problem for buyers, since getting a mortgage is far more expensive than it was last year. Thus, some people might be priced out of the market and have to keep renting, while others might have to purchase a smaller home than they would like.
For sellers, the effect is less direct. However, they might be affected because they won’t be able to charge as much for their property since the buyers can’t afford a large mortgage anymore. While more than half of all homes went above the asking price last year, this is no longer the case.
Supply Is Lower and Demand Remains High
Although higher mortgage rates sound like a disaster for both buyers and sellers, this isn’t the case in California. The effect has been much less drastic than in other areas because there is still a lot of demand for housing. While some people are no longer able to purchase a home, there are plenty of others who can either afford a high mortgage payment or have enough money to buy a property outright.
At the same time, many sellers aren’t putting their homes on the market, so there is less supply. This means that if you’re looking to sell, your home will still be desirable, and you’re unlikely to have to settle for much below the asking price. In fact, the average sale price is around 98% of what the seller asked for, so you won’t have to take a large hit.
There Is Less Competition
Last year, there were often multiple buyers competing for the same properties. As a result, bidding wars were not uncommon, and some homes went for $100,000 more than the asking price. This is no longer the case. There are fewer buyers in the market, and they are on a tighter budget, so they are more likely to pass on a property if someone else is competing against them.
If you’re a seller, you might be worried about this lack of competition, but it’s important to remember that Los Angeles is still a seller’s market, so there are more buyers than properties available. As long as you’re advertising in all the right places and your home is in good condition, you shouldn’t have any trouble finding a reliable buyer.
Is This Still the Right Time to Sell?
Even though mortgage rates are much higher now than a year ago and some people have dropped out of the market, there are still plenty of people looking to buy a property. As a seller, if you present and market your home right, you’ll be able to make a good sale. The easiest way to do this is to hire an experienced real estate agent who will help you make the most of your property.
They will view the home and tell you how much it might be worth, so you can list it at the correct price. Additionally, they will help you show off your property’s best features, create an excellent listing that will attract the right kinds of buyers, and market your home in various online and offline publications. That way, you will get maximum exposure, and your chances of selling the property above the asking price are higher.
Is This the Right Time to Buy?
Nobody knows what the property market will do next. Mortgage rates could rise further and house prices could collapse, or the situation could change, in which case prices might climb again.
If you’re looking to buy a property, now could be a good time because you might not have to pay over asking. People who need a mortgage might still have to pay a lot due to the high mortgage rates, but if you are able to make a cash offer, you’re in an excellent position at the moment.
How Do I Find Good Real Estate Agents Near Me?
Googling “real estate agents near me” is a good first step because the best realtors are likely to have a website. You can browse this to find out more about the person, the kinds of properties they sell, and how much experience they have. It’s always best to choose someone who has been working in the area for a while because they will know specific details about the local neighborhoods, and they will be able to help you navigate the current market.
Mortgage rates have more than doubled in the past year. Many potential buyers are now no longer able to purchase a property, and some sellers are holding onto their homes because they are worried about not receiving enough offers. But just because market conditions have changed doesn’t mean you can’t buy or sell your property in Torrance, CA. Call Teresa Mack now to find out what your home is worth or to discover the most desirable local properties.