Lowest Mortgage Rates in 4 Months After Inflation Data is Released
After Thursday's release of the Consumer Price Index (CPI), rates dropped to their lowest levels in 4 months with 30-year fixed rates at 6.07%.
The market continues to be very healthy nationally as even with the weakening national economy housing inventory levels remain at historic low levels.
Locally, inventory in Los Angeles continues at historic levels and is declining as well
I found a great barometer of the housing situation, which is the used vehicle market. situation. Much like housing, when the pandemic hit, the market, which had been healthy, experienced historic rises, with values increasing about 40% in a little over a year, and then has adjusted down about half of that.
Does that mean the market is weak? Or that the historic market caused by the pandemic has adjusted down to just a great market by any standard.
What is clear is that all the exaggerated bad news in the real estate market has taken a toll on consumer confidence. I have maintained for years that the real estate industry news is worse than the political news and more full of disinformation. The result is that less than 20% of consumers today believe it's a good time to buy a home, down from a historic norm of over 70%, and over 55% of consumers think it's a bad time, compared to the historically normal 20% or so. Now, by definition, if the normal market has 75% think its a good time and 20% think its a bad idea, the survey is out of balance, but to reverse this dramatically when the market is still moving forward says buyers are probably missing an opportunity due to their exaggerated sense of fear.
Fake Danger Sign Of The Week: Apartment data
There has been much in the press about the drop in apartment rentals and the rise in occupancy, with a dramatic graphic showing a negative number!
However, the negative number just shows the comparison of one month to the next, suggesting a change in direction of the market. In this case, in the 4th quarter, the monthly apartment units rented up were less than the prior quarter, again, this after a historic rise over the past 2 years during the pandemic period. And, again, this shows the abnormal pandemic market is adjusting to a more normal time.
When you break down the data, it is even more clear. When you look at the occupancy rates, the current rate declined to around 95% from the pandemic high of over 97%, again, a historic number.
While it is true that 95% occupancy is 1 or 2% below historic norms, this is after landlords have enjoyed increased rents of 15% a year for the last 2 years, so even with the slight increase in vacancies landlords are enjoying historic rental incomes. Rather than a sign of pending doom, the overall rental numbers show an economy with increased demand for housing at higher prices and unmet needs for additional inventory.
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Bill Gross, The LAProbate Expert
I am a real estate broker in Los Angeles, CA focused on probate real estate and the leader of a team of over 1,100 agents nationally probate experts.
Join my live stream weekly on probate real estate: www.ProbateWeekly.com
#probateattorney #probatesales #probaterealestate
I host two FREE Real Estate Zoom calls every week:
Real Estate Flipping / Investing Focused:
Tuesday 3PM Pacific Time
Link: https://www.eventbrite.com/e/so-cal-real-estate-investment-meetup-tickets-80900334077
Topic: So Cal Real Estate Investing Meetup
This group is for Landlords, Fix and Flip, Traditional and Non-traditional Real Estate Investing, as well as all Real Estate Service Providers (Agents, Title, Contractors, and more.),
Probate Focused:
Thursday 4PM Pacific Time
Link: https://www.eventbrite.com/e/how-to-get-your-first-sale-in-probate-real-estate-tickets-67396261031
Topic: How to Get a Sale NOW in Probate Real Estate
There are lots of programs that promise to help you sell a LOT of homes, but how do you get your 1st sale? As the baby boomer ages, the number of homes being passed on to heirs continues to increase. I'll share with you 11 different ways that I have generated a listing or buyer sale that do not cost you any money.
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