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Hello this is Ron Henderson President and Broker of Multi Real Estate Services
It'sAugust 28, 2013and this is a real estate market update for the San
Fernando Valley,
Los Angeles, California. The local real estate market is still very strong,
values are up, and inventory is still tight. That said,
the inventory is starting to increase and interest rates have jumped up pretty
good since May and stuff we have any effect on the market. Here's an overview
on what's transpiring,
Several areas of the San Fernando Valley have had year over year values increase by
over 25%.
The latest Case Shiller index for the Los Angeles region shows a 20%
increase,
but that was before the impact that the interest rates jumping up starting last
May.
his massive appreciation rate we've realized in the LA region over the
past year and a half
will be moderating over the next few months. You can see in this chart,
we are finally seeing a trickling up of inventory.
The supply is still too tight to meet demand, But the new listings are coming in,
and we are seeing overpriced listings taking some price reductions.
You can see the knee jerk reaction to the interest rates jumping up in May,
by the drop of the quantity of escrows closing in June.
A lot of transactions were loans that weren't locked blew up..
The new escrow openings have stabilized, but still below the last couple of years
quantities.
This is what we have to watch out for over the next few months:
Are the interest rates going to stabilize? How soon will the Federal Reserve
their Quantitative Easing?
Basically they've been buying mortgage backed securities, forcing the
interest rates to be lower than they would be normally.
How many more properties will the Institutional and foreign investors be
buying going into the future?
How tight will the final CFPB rules be,
that will affect buyers qualifying for loans and banks making loans after
January?
Will wild cards (like Syria) have an economic effect domestically?
The real estate market is in transition.there's a lot going
that will have an effect on it, and keep my eyes on it for you.
IF YOU'RE IN THE LOS ANGELES REGION, AND HAVE ANY SPECIFIC QUESTIONS, ALWAYS FEEL FREE IN
CONTACTING ME THROUGH MY WEBSITE
MRES.com or the email address for phone number shown below
Till next time. Take care.