Last year we saw interest rates on home loans increase rather steadily throughout the year, going from a low of about 4% at the beginning of the year to about 4.9% in November. As a result, the housing market at the time began to slow down and the median price of a home here in greater Los Angeles, Long Beach, and Orange County dropped from $560,000 in June 2018 to $510,000 in January 2019. That was a 9% drop!
Since then, we have seen a complete reversal in interest rates and thus the housing market as a whole.
Interest rates this year have been declining since the peak in November 2018, and right now, rates are even lower than they were at the beginning of 2018. As a result, the market has come roaring back. Median sales prices in April and May came in at $555,000 and are now almost back to where they were at the peak of 2018. We expect the price for June and July to be higher.
Right now, interest rates are about 1% less than where they were in November 2018 and about 0.5% less than where they were at this point last year when prices were the same. So if you are a buyer, this is a great time to buy and lock in these low interest rates. If you are thinking of selling, this is also a great time to do so before interest rates start to go back up again.
If you are thinking of buying or are just curious to see what your options are, feel free to use my online home search at www.imaginerealty.com, which gives you access to every home on the MLS. This site is updated every couple of minutes and always has the most current information.
If you are curious to know what homes have sold for in your neighborhood, Just click on “What’s My Home Worth” on the top right corner of our website www.imaginerealty.com to receive an online home value estimate.
And finally, if you would like to take the next step towards buying or selling call me at 1-800-309-1528. I hope to hear from you soon!