Free Money! Almost.....
As the U.S. economy begins to reopen, unemployment falls and we get more color on what the post Covid world will look like, it is clear that the residential housing market has stayed incredibly resilient! With interest rates hitting yet lower lows and single family inventory being swallowed up at an incredible rate, prices for single family real estate continue to drive higher. No doubt the Fed's stance of "Not even thinking about hiking rates" has had a huge influence on the housing and lending markets, and continued demand for "more space" and a "home office" has kept these homes flying. Interestingly, despite the ever higher prices real estate affordability is at a higher than average level, (likely due to the incredibly accommodative lending environment) so it seems to be an attractive time to both buy and sell a home - sell and you will get a competitive price, buy and you will pay very little in interest! What sparks my curiosity however is the question "how sustainable is this?" We often hear about "buyer's markets" and "seller's markets", but usually not both at the same time. What I see in the data and in the tone of the market is an increase in volatility. Whether due to the government stimulus, low rates or something else, prices dropped briefly in early Covid and recovered even more quickly. Housing inventory dropped sharply and then recovered even more sharply. Interest rates seemed to be at all time lows and then dropped even lower. In my experience this type of increase in volatility tends to lead to further increases in volatility (at least in the short term) as unsustainable market trends work their way through markets. Will this result in more volatility to the "downside" or the "upside? I don't know. Could the upcoming election play a large role in the outcome? Very likely. Will inflation creep in as a result of ever cheaper money and ever higher asset prices? So far not yet. We are living in unprecedented times and it will be fascinating to see how this all plays out. In the words of that one guy from Jurassic Park - "Hold on to your butts!" Take care, - Gabe
Featured Listings
Just Listed
6737 Vesper Ave, Van Nuys 2 BR | 1 BA | 1041 SQ FT | 7,434 SQ FT Lot | $719,900 Calling all content creators! One of a kind opportunity to own a home with a separate turnkey creative space! Through your white picket fence you will find an inviting front yard and beautifully restored exterior. Inside you are greeted by a charming living room and dining room. Large windows allow plenty of natural light and the hand restored working fireplace adds charm. Sparkling hardwood floors guide you to two good sized bedrooms with brand new ceiling fans and attractive lighting. The bathroom features carefully restored tile and new fixtures. Kitchen includes a lovely breakfast nook, hand restored cabinets and stylish tile work. Property has brand new electrical. Huge backyard with fire pit and room for a pool! Legally enlarged garage is currently used as a recording studio, but perfect for any creative use, home office, or possible ADU! Features include two large rooms with high ceilings, a storage room, laundry room, a 1/2 bath and plenty of attic storage. Not to be missed!
Have you had any thoughts of buying or selling a home or investment property? LA Creative Realty is a boutique real estate brokerage firm. We combine generations of real estate and investment experience with modern technology exceptional client relationships and thoughtful investing to deliver the dream home for our Buyers, the best prices for our Sellers, and the best returns for our Investors.
Learn MoreEnjoy the LA Creative Realty Market Update?
Share us with your friends!
#lacreativerealty #realestateinvestor #realestateagent #firsttimebuyers #homebuying #LosAngelesrealestate #fivereasonstobuyahome #sellingyourhome #investmentproperty #realestatebroker #Californiarealestate #MarketInsight #TheNewNormal #FreeMoneyAlmost
Aegis Management DBA LA Creative Realty Lic. # 01932663
All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate. Equal Housing Opportunity.
Comentários