Dear Friends,
The holidays were a blur and here we are, closing out January. I am exploring revamping my newsletters- I will always include my take on the market, updates, news and sales. What would you like to learn more about? Specific articles, tips for sellers and/or buyers? Investment strategies and opportunities? As most of you know, I own investment property, dabble in design, and take great joy in helping people maximize their gains. Real estate is the gateway to achieving generational wealth. Please drop me a line and let me know how I can help.
Real Estate Roundup:
Market Report:
The Los Angeles market is warming up, mortgage rates are coming down, and all indicators point to a vibrant spring. If you are getting ready to sell your home and are not confident about what needs to be done prior to putting it up for sale, please call me. I’m very happy to come by and give you my thoughts on what improvements will bring you the most profits. If you’re getting ready to make a purchase, make sure you read the rest of this letter.
How do mortgage rates affect buying power?
As a rough rule of thumb, every 1% in interest rate raises or lowers your purchase price by about 10%. Do you recall me screaming from the rooftops last year, “Marry the house, date the rate!”? As rates drop, buyers will be able to afford more. Historically, competition heats up and sale prices with them. Those months of being the only offer on the table may soon end and in Los Angeles at least, the competition is fierce. I understand the desire to game the system, but buying while competition and prices are lower (even if it costs more in interest for a few months) is gaming the system. Interests rates are re-financeable. Sale prices are not.
Interest Rates:
Mortgage rates are down for the 3rd month in a row. I’m seeing products for 6.125% with zero points. If you are a buyer shopping for rates, I still recommend getting pre-approved for 3 different mortgages; for slow, medium, and fast deals. If you don’t know what this means, give me a call. Part of my process with my buyer clients is setting them up for success in a variety of situations.
Until next month,
Emily