Sometimes a sword cuts both ways.
Case in point – the Los Angeles real estate market.
Home sales in October fell 4/10th of a percent (0.4) from October 2014. September’s sales had reached the highest in 6 years before this October dip. Moreover, this was the first time in 9 months that sales had not exceeded the prior year. So it was noticeable.
According to industry sources, a key factor in the sales slide is a tightening of inventory which, in turn, is driving prices higher. Indeed, while the number of sales declined, home prices actually advanced 5.8%.
And, as we long predicted, mortgage rates are edging up. These two factors – limited inventory and a bump in interest rates – have caused a price increase and a dip in October sales.
Will rates continue to rise? Will inventory continue to tighten? Give us a call or swing by our office; we’ll examine all sales and inventory data in your area of interest.
Knowledge is power. Give us a call, we’d like to give you some.