If you are a hopeful homebuyer in Los Angeles feeling like you missed your chance, don’t worry! Fall is still a good time to buy. Here are three things to consider before you continue your home search.
Reason #1 – Mortgage rates aren’t forever.
Have you heard this common saying before? You marry the house, and you date the rate.
A top concern among homebuyers right now is rising mortgage rates. Recently, the average 30-year fixed mortgage rate soared over 5%. That’s high, especially when comparing it to previous rates; however, with every sharp increase usually comes a decrease.
Remember, you want to marry your dream home and date your rate. Homebuyers will have the option to refinance when rates drop.
We recommend that prospective homebuyers receive quotes from two-three different lenders to find their best option.
When working with a qualified real estate agent in Los Angeles, remember to ask them for their lender recommendations. You may even find a lender that specializes in your desired neighborhood.
Reason #2 – Decreased competition means increased negotiating power.
Earlier this year, we witnessed an extremely competitive sellers’ market, where homebuyers didn’t stand a chance unless they offered above-asking price, with a quick escrow and, in some cases, even waived contingencies.
Unlike previous months, the fall market has started to shift towards buyers. This fall, the market is seeing a rise in inventory and the median days on market.
These factors combined with rising mortgage rates have scared off noncommittal homebuyers, giving serious and prepared homebuyers increased negotiating power.
This fall in Los Angeles, homebuyers can underbid a home and make offers that include necessary contingencies such as a mortgage, appraisal, and home inspection. With lower and fewer offers per listing, sellers are more willing to negotiate.
Reason #3 – Rising Rent Prices
With Los Angeles rent prices still rising, purchasing a home may be the better choice depending on your financial situation.
reported in late September that “in Los Angeles, studio and two-bedroom rentals are up 4% from last year; three-bedrooms are up 3%. The research shows that the average rent for apartments in Los Angeles is between $2,262 and $5,095 in 2022, according to Rent.com.”
When you purchase a home, you can finally start building equity!
Still, hoping to buy this fall?
The Los Angeles housing market will always offer twists and turns, but as long as you’re armed with the right information, and you define your goals, you can’t go wrong.
If you’re a potential homebuyer, Fall is still a good time to buy in Los Angeles.
We know it’s a big decision, and we want to help! Stop by our office, or give us a call today, and one of our agents will take you step-by-step through our homebuying