Interest Rates Climb
April 18,2022 | Posted By Julian Munoz in Los Angeles Real Estate Market
In the last 2 months interest rates climbed significantly and have reached over 4.5%. More than likely it will finally break 5% later this year if inflation continues to hold strong. Prices though have not flagged and have done the opposite, they surged instead, probably many buyers feel they must purchase their property prior to being priced out of the market. Lack of inventory continues to plague the market and demand has outstripped supply even though supply of homes for sale have increased in the past 6 months. Total sales have increased by about 10%, but days on market has come down, meaning that new inventory rarely stays on the market past 3 weeks, the median is about 10-14 days on market. Prices will continue to rise but will more than likely start to flatten in appreciation this year. A housing shortage continues to persist for the years to come, California is short on housing of more than a million units.
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